One of the reasons for financial liberalization is to adequately mobilize domestic savings in developing countries. Hence, this study investigated the existing relationship between financial liberalization and domestic savings in Nigeria. In achieving this, contemporary econometric approach involving unit root test, co-integration test and error correction model was adopted to analyze the time series data from 1970 to 2015. The study used interest rate spread and financial liberalization index as measures of financial liberalization. It used credit to the private sector over GDP and the number of bank branches over the population to measure financial deepening and financial inclusion respectively. The findings revealed that per capita income and financial deepening were the two factors that affected domestic savings in Nigeria significantly as against interest rate which was widely viewed as the major factor affecting savings mobilization in Less Developed Countries. The study recommended increase in the existing level of per capita income which could be achieved by upward review of wages and salaries of workers every three years. Monetary authorities should use moral suasion to encourage microfinance banks and commercial banks to establish branches in rural areas to help further reduce the population of unbanked Nigerians and ensure greater financial deepening. Monetary authority should ensure that interest rate is determined by market forces to reflect the true depth of the Nigerian financial system and thereby reduce the interest rate spread. The sustenance of CBN autonomy was equally recommended as a key to ensuring financial system stability
Financial inclusion as the provision of a broad range of high quality financial products such as savings, credit, insurance, payments and pensions, which are relevant, appropriate and affordable for the entire adult population especially the low income segments of the economy. This study critically examines the sustainability of financial inclusion to rural dwellers in Nigeria using descriptive study and content analysis. The study observed that the sustainability of financial inclusion to rural dwellers in Nigeria remains the mainstream for economic growth in any country. The implication of this study is that economy cannot grow fast without proper implementation of financial inclusion to rural areas in Nigeria. The study recommended that the promotion of collaboration between Deposit Money Banks (DMBs), Microfinance Banks (MFBs) and Communication services providers for enhanced intermediation of financial services should be encouraged; there is need to educate rural dwellers on the importance of banking as it would facilitate the success of CBN financial inclusion policy and that since some of the rural dwellers preferred to keep money under their pillows at home, there should be proper enlightenment to change their orientation on financial inclusion in Nigeria.
Barriers of Access to Finance in Nepal (Published)
Access to finance has several meanings, reasons and consequences. Normally, access to finance has two facets, i.e. at household or individual level and business firm level (Beck and Kunt, 2008; World Bank, 2009) to reach in financial institutions to consume financial services. Many policies are formulated and practiced in Nepal to increase access to finance, still the situation is poor. Number of financial intermediaries are increased since the decades, however a larger segment of people are out of financial mainstream. Still, the people do not know about financial services, about service centers and doing business; i.e. financial literacy is poor. From this, a consistent and sustainable access of them to financial services is questionable. Access of people in financial services or access of service providers to people is a ‘double barrel’ question. Similarly, why the poor access among the efforts to increase it since some decades in Nepal is a big question. The paper presents some of the reasons for the poor access of people in financial services. The paper is based on analytical design with some secondary data.
Inclusive financial arrangement is becoming a policy issue in both developed and developing nations of the world as it has been perceived as a veritable tool for poverty alleviation and economic development. This paper examines the effects of financial inclusion on the economic growth of Nigeria (1982-2012). Data for the study are collected mainly from secondary sources such as Statistical Bulletins of the Central Bank of Nigeria (C.B.N.), Federal Office Of Statistics (F.O.S.) and World Bank. Employed data consist of such bank parametric as Branch Network, Loan to Rural Area, Demand Deposit, Liquidity Ratio, Capital adequacy, and Gross Domestic Product. Extracted data spanning about thirty-year period; 1982 to 2012 were related using the Ordinary Least Square (OLS) method (STATA 10). Tested hypothesis on Poverty Reduction found Loan to Rural Areas(LRA)Agric. Guaranty Fund (ACGSF)significant to Per Capital Income(PCI) (@5%)given t-stat2.82,p>t=4.85 while Financial Deepening(FDI) and Broad Money(FD2) also significantly influenced Economic Growth(Using GDP)with t-stats=3.61, 4.85 p>t=0.0013 and 0.000 respectively. Deposits From Rural Areas(DRA)as surrogate for financial inclusion is influenced by Loans to Rural Areas (LRA) and Small Scale Enterprise (LSSE)as surrogates for financial intermediation given t-stats=2.2 and2.9with p-values=0.03 and 0.007. The overall results of the regression analysis show that inclusive Bank financial activities greatly influenced poverty reduction(R2=0.74) but marginally determined national economic growth and Financial Intermediation through enhanced Bank Branch Networks, Loan To Rural Areas, and Loan To Small Scale Enterprise given about 50% relatedness between variables on either sides of the equations. Policy recommendations are made on the basis of these findings.