A STUDY ON FINANCIAL INCLUSION AND ECONOMIC GROWTH: WHAT ROLES DO INSTITUTIONS AND FINANCIAL REGULATION PLAY

Abstract

This study examines the relationship between financial inclusion, economic growth, and the roles of institutions and financial regulation. Financial inclusion, defined as access to and usage of financial services by all individuals and businesses, is increasingly recognized as crucial for fostering economic development. Institutions such as banks, microfinance organizations, and regulatory bodies play pivotal roles in promoting financial inclusion through policies and initiatives that enhance accessibility and affordability of financial services. Effective financial regulation ensures stability and consumer protection, thereby fostering trust and participation in financial markets. By analyzing empirical data and case studies, this study aims to provide insights into how improved financial inclusion, supported by robust institutional frameworks and regulatory environments, can contribute to sustainable economic growth. Understanding these dynamics is essential for policymakers and stakeholders seeking to enhance inclusive economic development strategies globally.