Financial Inclusion and Stability: What Does Research Show?

This Brief explores what research to date shows about the linkages and potential beneficial relationships among factors enabling financial inclusion and identifies gaps therein. A growing body of research suggests that whether access to formal financial services promotes financial stability depends on how that access is managed within the regulatory framework. Especially financial integrity and consumer protection relies on regulatory and supervisory support. The paper concludes that notwithstanding the progress standard setting bodies have made and the substantial volume of empirical research have been conducted, important gaps remain. However, among other gaps, it still remains to be explored how financial inclusion contributes to political, social, and financial stability.