Financial Inclusion And Financial Stability: Current Policy Issues
The recent financial crisis has shown that financial innovation can have devastating systemic impacts. International standard setters' and national regulators' response has been a global concerted effort to overhaul and tighten financial regulations. However, at a time of designing stricter regulations, it is crucial to avoid a backlash against financial inclusion. In this chapter, the authors argue that greater financial inclusion presents opportunities to enhance financial stability. The global economic crisis, despite its roots in financial sectors of industrial countries, will likely shift the focus of future financial inclusion policies.