The Effect of Financial Inclusion on Financial stability in the SME’s From Bankers’ Viewpoint 'The Egyptian Case'

Abstract

Financial inclusion is currently a very important event that had drawn many international organizations to talk about and try to spread all over the world. It had shown its importance for individuals and organizations. Financial stability is now so important in the economy of any country in which it refer to the capability of the economy and financial institution to resist internal and external economic shocks to achieve its primary functions. In this research we tried to find the relationship and the effect of the financial inclusion on the financial stability in the SME’s as the SME’s is the drivers for the country growth. The research will be applied on the Egyptian economy and our expectation that there is a positive relationship between the two variables. In this study, the focus was on analyzing the different stakeholders (CBE, FRA, and the Ministry of Finance) in promoting financial inclusion for different targeted beneficiaries mainly SMEs. The study tested the relationship between the Financial Inclusion & the financial stability. The importance of the study comes from the claim that financial inclusion can have over Egypt’s economic growth on different potential beneficiaries. The thesis general framework tried to find the link between FI & FS in Egypt SME’s through an exploratory study to identify the relationship and the recent progress achieved towards increasing the inclusive financial system for Egypt. Data was collected through questionnaire in which a questionnaire was distributed among a different participants that reached almost 200 participants and respondents reached 103 respondents and results were collected and analyzed through SPSS.