Abstract
AbstractThis chapter simultaneously explored the causal links among financial inclusion, banking sector development, and financial stability. It used a panel vector autoregressive (VAR) estimation approach to empirically explore these causal links. Financial inclusion, banking sector development, and financial stability all have a reverse causation, according to the findings. This finding suggests that these variables are complementary rather than contradictory. Accordingly, financial institutions and central governments should not separately pursue any of these variables as a policy objective but rather consider them as complements when modeling or implementing economic policies for development. This allows the pursuit of financial stability without compromising financial inclusion and banking sector development.KeywordsFinancial InclusionBanking Sector DevelopmentFinancial StabilityVector autoregressiveAfrica
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