IMF Working Papers

The Anatomy of the Financial Inclusion Gap in the Caucasus and Central Asia

By Tigran Poghosyan

May 26, 2023

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Format: Chicago

Tigran Poghosyan. The Anatomy of the Financial Inclusion Gap in the Caucasus and Central Asia, (USA: International Monetary Fund, 2023) accessed November 24, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper analyses how financial inclusion in the Caucasus and Central Asia (CCA) compares to peers in Central and Eastern Europe (CEE). Using individual-level survey data, it shows that the probability of being financially included, as proxied by account ownership in financial institutions, is substantially lower across gender, income groups, and education levels in all CCA countries relative to CEE comparators. Key determinants of this financial inclusion gap are lower financial and human development indices, weak rule of law, and physical access to bank branches or ATMs. This suggests that targeted policies aimed at boosting financial and human development, strengthening the rule of law, and supporting fintech solutions can broaden financial inclusion in the CCA.

Subject: Balance of payments, Economic sectors, Financial account, Financial inclusion, Financial markets, Financial Sector, Financial sector development, Income, National accounts

Keywords: Caucasus and Central Asia, CCA country, CEE comparator, CEE peer, Central Asia and the Caucasus, Estimation result, Financial access, Financial account, Financial inclusion, Financial sector, Financial sector development, Global, IMF working paper 23/109, Income

Publication Details

  • Pages:

    34

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2023/109

  • Stock No:

    WPIEA2023109

  • ISBN:

    9798400243431

  • ISSN:

    1018-5941

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