Financial Database Research Articles

Arithmetic Optimization Algorithm with Adaptive Neuro-Fuzzy Interference System for Predicting Financial Crisis

Financial technology (Fintech) is paramount in driving advanced technologies, economies, society, and several other sectors. Smart Fintech is the new-generation Fintech, primarily stimulated and endowed by compuational technology. Smart Fintech syndicates DSAI and renovates economies and finance for dynamic, smart, customized, automated services and systems, economies and financial companies, and the industry. The strength and development of the country’s economies are assessed by the correct forecasting. Financial crisis prediction (FCP) has the substantial consequence on the economies. Previous studies mainly emphasise statistical, DL, and ML methodologies for predicting the financial well-being of the business. Therefore, this article develops a new Arithmetic Optimization Algorithm with Adaptive Neuro-Fuzzy Interference System (AOA-ANFIS) technique for Predicting Financial Crisis. The presented AOA-ANFIS technique aims to predict the presence of financial crises or not. The model incorporates three major elements: Arithmetic Optimization Algorithm (AOA) for feature selection, Adaptive Neuro-Fuzzy Inference System (ANFIS) as the classification algorithm, and Bat Optimization Algorithm (BOA) for parameter tuning. The AOA feature selection model effectively detects the important attributes from a large proportion of financial indicators, augmenting the model's prediction capability while decreasing computational difficulty. Subsequently, the ANFIS classifier exploits the features selected for capturing the intricate non-linear relations intrinsic in financial data, permitting accurate crisis calculation. Additionally, the BOA parameter tuning model augments the ANFIS model's parameters, ensuring robustness and optimum performance. Experimental outcomes on varied financial databases validate the higher efficiency of the AOA-ANFIS technique over underlying processes, demonstrating its effectiveness in forecasting financial crises with great reliability and precision.

LIFE INSURANCE DEVELOPMENT AND ECONOMIC GROWTH: A CASE STUDY OF NIGERIA (2000-2022)

This research looked at the development of life insurance and economic growth using Nigeria as a case study from 2000 to 2022. Specifically, the authors examined the causal relationship between life insurance development and economic growth, analyzed the effect of life insurance penetration and life insurance density on real GDP growth rate. Data used for the study were collected from sources including the World Development Indicator database, Global Financial Development Indicator database, NIA digest database, and Central Bank of Nigeria statistical bulletin. Granger causality test and Autoregressive Distributed Lag (ARDL) co-integration were used in the investigation approach. The granger causality test result indicated that there is no causal connection between Nigeria's economic growth and the development of life insurance. According to ARDL estimate results, life insurance density and penetration had a negligible positive effect on the real GDP growth rate. Hence, this study established that life insurance development is yet to contribute to economic growth in Nigeria, due mainly to its low level and mode of operations. Therefore, this study recommended among others that life insurance institutions should also increase their scope of operations to be directly involved in business investments other than financial market investment to enhance their level of significance in the growth process of Nigeria.

Financial depth versus more comprehensive metrics of financial development in tests of the finance-growth nexus

First, the paper gives a critical appraisal of recently proposed quality adjustments of the ratio of private credit to the gross domestic product (GDP) as a proxy for finance in empirical tests of the finance-growth nexus and cautions against such heuristic measures. Second, in response to the unidimensional feature of conventionally applied proxies for finance, the paper constructs a variable for financial development (FD metric) that measures the relative distance of a financial system from its best attainable performance in terms of depth, access, efficiency, and stability. The measurement is grounded in the principles of data envelopment analysis for ratio data and is built on structural indicators available in the Global Financial Development Database by the World Bank. Using annual data for 157 countries over the period 1993–2020, the paper then explores the finance-growth nexus using several financial metrics in panel-data regression models and considering nonlinearity in both a parametric and semiparametric manner. Economic growth is found to react negatively to finance, whereas this detrimental effect strengthens beyond a certain level of financial depth. In contrast, the access, efficiency, and stability of the financial sector are less important for growth. Hence, the findings lend weight to an economic policy focused primarily on a minimal size of the financial sector that permits its smooth operations, without the need to ensure that the financial sector performs qualitatively at its best.

Individual entrepreneurial behavior and financial literacy

The technological revolution we have been witnessing over the last 30 years is bringing about important changes in business management, specifically in the conception, development, and management of its financial aspects. How to face these challenges is a particularly critical question for individual entrepreneurs who have to assume a much greater responsibility for decisions than in other corporate environments. In this sense, it is very important to understand the financial capabilities and skills and their limitations of this type of entrepreneurship, which is so important for the renewal and extension of the business community in any developed economy. Based on an extensive official survey of this type of entrepreneurship, this research proposes a logistic regression modeling, in order to find out the level of financial knowledge of this business group. One of the findings of this research is that individual entrepreneurs have a higher level of financial knowledge than salaried workers, with a higher qualification in this respect in the case of individual entrepreneurs with employees. This study analyses the link between individual entrepreneurs or self-employed workers – with or without employees – and financial literacy. In addition, we investigated the relationship between this group with their socio-demographic characteristics, financial product holdings, financial planning, and financial fragility. Different binary logistic regression models with maximum likelihood were estimated using a sample of individual entrepreneurs and self-employed workers from the Survey of Financial Competences database conducted in Spain to achieve this. The results of the study show that individuals who choose to be individual entrepreneurs or self-employed, and in particular those with hired workers, had a higher level of financial literacy than salaried workers. Moreover, it was confirmed that financial literacy complements the explanatory power of the other variables analyzed with respect to sole proprietors without employees, although not to a significant degree. The limitations of this work are due to the use of data from the Financial Skills Survey, so some dichotomous variables offer very generic information. In addition, the database is cross-sectional and we cannot analyze variations between different periods. No research before had applied the relationships between the behavior of individual entrepreneurs, with and without employees, and financial competencies using logistic functions and on the basis of a rigorous and comprehensive formal questionnaire. The conclusions provide a valuable perspective for developing training programs for this type of human capital aimed at raising the financial skills of individual entrepreneurs to improve personal and business management.

Sensitivity Analysis Based on Portfolio Option Models Using Tesla and Nio as Examples

The electric vehicle (EV) industry is undergoing a significant transformation, driven by environmental concerns, advancements in battery technology, and changing consumer preferences. Companies like Tesla and China's NIO are at the forefront of this revolution, showcasing the global potential of EVs. This study undertook a sensitivity analysis of these two leading EV manufacturers, Tesla and NIO, to understand the dynamics of their stock prices and implications for investment strategies. Data was meticulously collected from various financial databases to capture daily stock prices, which were then used to compute monthly returns. The study also delved into options, focusing on the strike prices and volatility of Tesla and NIO options. Using a combination of stock prices, strike prices, and volatility, the intrinsic and time value of these options were analyzed. The research employed a composite option model to describe the price variation of an option, considering factors like asset price volatility, risk-free rate, and dividend yield. The findings revealed that stock prices and option prices exhibited certain sensitivities to market variables. For instance, Tesla's option prices showed an upward trend with rising stock prices, while NIO's option prices displayed varied responses to stock price changes. The study underscores the importance of understanding these sensitivities for informed investment decisions in the evolving EV market.

Historical analysis of the cost of acquiring a coronary stent and feasibility of the new ministry of health ordinance: a retrospective observational longitudinal study

Introduction: According to the World Health Organization (WHO), cardiovascular diseases (CVD) are the leading cause of death in the world. It is estimated that 17.7 million people died from CVD in 2015. According to data from DATASUS, in 2008, 44,138 coronary angioplasties were performed with or without stents. In 2016, 79,997 angioplasties were performed. The cost of orthoses, stents, and special materials for hospitals impacts the financial balance of the single health system (SUS). Objective: It was to carry out a cost analysis of stents for angioplasty from the perspective of the Brazilian Unified Health System. Methods: The present study followed a retrospective longitudinal observational model (STROBE). Data on stents about the years 2020 and 2021 and the cost assessment were carried out by searching the intra-hospital financial database of Santa Casa in the city of Jaú, São Paulo, Brazil, and the SUS table. The research was in the field of incomplete economic evaluation (cost analysis and brands of stents) through macro-costing of stent supply. The variables were presented as percentages, mean, and standard deviation. Comparisons of variables were performed using the Kruskal-Wallis test, with p<0.05, and Tukey analysis (ANOVA-One-Way) with p>0.05 with a statistical difference. Predictive logistic regression analysis was performed to better understand the trend in stent costs each year, with a significant p<0.05. Results: After analyzing the intra-hospital financial data and the SUS table, they showed a significant increase in the transfer value of stents from 2020 to 2021, with average values in reais of R$1,399 to R$2,478, respectively. This difference of R$1,079.00 can be justified by the period of the COVID-19 pandemic, as well as the increase in demand for stents. Conclusion: Lower average values for stent costs were observed in 2020 and 2021 compared to other stent values that were published in studies covering the same periods. However, the average cost of stents in this study in 2021 showed significantly higher values compared to 2020, which further burdened the budget of the Unified Health System. The future perspective is that a greater transfer of funds from the Federal Government for the Unified Health System, as well as a reduction in the cost prices of stents by manufacturers and suppliers in the post-COVID-19 period, to obtain a balance in public spending. Furthermore, it is expected that drug-eluting stents will be more widely used in the Unified Health System. Furthermore, it is necessary to establish public policies to standardize stent prices.

Evaluating The Data Analytics For Finance And Insurance Sectors For Industry 4.0

The insurance industry relies heavily on statistics, despite the absence of a physical good or service being sold. A financial, risk, consumer, producer, and actuarial database would be created by such an industry. In prior decades, these sectors gathered structured data that they augmented with product and policyholder details. However, semi- and unstructured data represent a massive untapped resource. This will also prevent the insurance from making the most of the information it collects. Despite the striking similarities between healthcare delivery and insurance funding, life insurer problems have hampered the field for the better part of a century. Organizations that need both unstructured and structured data to flourish can find the optimal places to store both types of data according to research. The insurance industry may make better use of data with the help of applied analytics. The insurance industry is also discussed in relation to big data adoption techniques such as training, research, collaboration, and implementation. Several models of the data adoption and transformation methods that contribute to the insurance sector's extraordinary data analysis and forecasting abilities are shown in this article, which delves into the data transformation practises of the insurance business. Healthcare delivery systems need to be overhauled for "Big Data Analytics" to be of any real use. The purpose of this study is to investigate the ways in which modern data management has changed the insurance sector, as well as the traits and applications that have paved the way for the emergence of cutting-edge tools and the expansion of the economy.

The Influence of Cryptocurrency (Bitcoin), IHSG, Fed Rate, and BI Rate on IDX BUMN 20 Stock Prices

The cryptocurrency market has grown significantly in recent years, with Bitcoin emerging as the dominant player. This research aims to investigate the relationship between cryptocurrency (Bitcoin) prices, the Indonesia Stock Exchange Composite Index (IHSG), the Federal Reserve (Fed) Rate, and the Bank Indonesia (BI) Rate with the stock prices of IDX BUMN20 companies. The study adopts a quantitative research approach, utilizing historical time-series data for the variables of interest spanning a specific period. The data will be collected from reputable financial databases and sources. Multiple regression analysis and White analysis causality tests will be employed to examine the potential influence of these factors on IDX BUMN20 stock prices. The findings from this research are expected to shed light on the interconnectedness of the cryptocurrency market with the traditional stock market in Indonesia and provide valuable insights for investors, policymakers, and market participants. Understanding these relationships can aid in risk management strategies and investment decision-making. However, it is crucial to note that the cryptocurrency market is known for its volatility and speculative nature, which may introduce unique challenges in interpreting the results. Therefore, cautious consideration and expert financial advice.

Technology Exploration and Technology Exploitation in Japanese Chemical Companies

This study analyses Japanese chemical companies’ performance based on open innovation activities. 19 listed chemical companies from Tokyo Stock Exchange were selected for the study. Secondary data from chemical companies' patents information and company transactions are collected through the private patent database, Derwent Innovation - Clarivate and private financial database, Thomson Reuters - Eikon. The findings indicate that open innovation practices did not improve Japanese chemical companies’ performance (return on net operating assets). Overall, neither technology exploration nor technology exploitation competencies are contributing to company performance, but one significant finding is found where divestitures of subsidiaries and joint ventures are improving company performance. In conclusion, some suggestions have been made for Japanese chemical companies to practice open innovation activities more efficiently.

Covid-19 Salgını Sırasında Finansal Refah: Tıbbi Maliyetlerle İlgili Endişeler

Financial wellbeing which represents a great concern for individuals regardless of their social status or their current employment situation constitutes an important element of overall individual wellbeing. Within a broader structure of financial wellbeing, concerns about medical costs have gained a vital importance particularly following the pandemic. Identifying what factors influence this growing concern is critical to tackle with the problem and improve individual wellbeing. Hence, this study is expected to shed light on such an important individual and national concern. To that end, this paper utilizes Global Financial Inclusion Database which is based on national representative surveys of about 128,000 adults across more than 120 countries. Empirical analysis in which ordered probit model was applied aims to investigate if there exists an association between financial concerns about medical costs and COVID-19. Findings of the empirical investigation reveal that being in the group of those who are very worried about financial hardship due to Covid-19 outbreak increases the probability of reporting being very worried about medical cost payments by about 34.5 percentage points. Therefore, it is seen that pandemic detrimentally related to individuals’ increased concerns over medical costs. These findings are expected to guide policy makers on the management of healthcare system and measures to improve individual wellbeing.

The impact of bank performance and economic growth on bank profitability: CAMEL model application in middle-income countries

This paper aims to study the impact of both bank performance and economic growth on bank profitability in 8 middle-income countries from the Middle East and North Africa (MENA) region and MINT countries using the Generalized Method of Moments (GMM) model. Bank profitability is measured by return on assets (ROA) and return on equity (ROE), net interest margin (NIM) is measured by CAMEL model, and economic growth is measured by gross domestic product (GDP) growth. The sample period ranges from 2000 to 2020, and data are extracted from the World Bank financial indicators and database. This paper is supported by the financial intermediation theory. By comparing both MINT and MENA regions, the results show that in the MINT region, ROA is affected most by both asset management and capital adequacy ratio (CAR), while NIM is affected by asset management, liquidity, and management. Regarding the MENA region, ROA and NIM are affected by CAR only. No relationship was found between ROE and any of the CAMEL determinants in both regions. The results show superior performance for MINT than MENA; strong and active capital, increment in assets, credits, and deposits, and enhancement in bank profitability that is reflected in economic growth progress. Both MENA and MINT regions’ profitability (ROA and ROE) is affected by GDP, so their economies are restructuring very well and their banking industries are expected to grow rapidly.

Alternative data and trade credit financing: Evidence from third-party online sales disclosure

This study examines the relationship between the introduction of alternative data and trade credit financing. Using the event of the public launch of firm online sales data in a well-known financial database in China, we show that firms obtain more trade credit from suppliers with the public disclosure of such alternative data. We extend the literature by shedding light on the important role of alternative data in capital markets to assess the operational transparency and credit risk of firms.

Infrastructure Spending and the Regional Financial Development: Evidence from the Eastern African Belt and Road Initiative Countries

This paper examines the causal relationship between infrastructure spending and regional financial development in Eastern Africa, including Ethiopia, Kenya, Tanzania, Rwanda and Uganda, for 2007–2017 within a trivariate vector autoregressive framework. We use the Global Financial Development Database from the World Bank. We extend the conventionally accepted ratio of financial development by including the Belt and Road Initiative (BRI) spending as an additional variable. The empirical strategy involves applying the Granger causality tests using the cointegration and vector error correction methodology. We find evidence of a two-way Granger causality: (1) between the BRI spending and regional financial development and (2) between the BRI spending and regional growth. These findings suggest that an increase in infrastructure spending, particularly in transport, telecommunications and energy, positively affects regional financial development in Eastern Africa and increases the unbanked population’s inclusion in the region.

How performance pressure influences firms’ cross-boundary growth: the moderating effect of managerial discretion

PurposeIn today's complex and rapidly changing business environment, cross-boundary growth is increasingly critical to the survival or even success of organizations. The purpose of this study is to examine the forming mechanism of firm’s cross-boundary growth by integrating the two important antecedent factors of performance pressure and managerial discretion into a united framework and theoretically analyze the direct role of performance pressure on firm’s cross-boundary growth as well as reveal the moderating role of managerial discretion. Also, the authors select listed manufacturing companies in China as samples to empirically test the research hypotheses.Design/methodology/approachThe authors design a multiple regression model to perform empirical analysis by using a panel of 4,002 year-observations in 1,334 listed manufacturing companies between 2013 and 2016. The sample data sources mainly come from the Wind Database, which is mainland China's leading financial database and software services provider. The hypotheses proposed are tested by adopting a panel data set of the listed manufacturing companies of China.FindingsEmpirical results show that performance pressure has a positive effect on the cross-industry growth and cross-domestic regional growth but a negative effect on the cross-international regional growth, and managerial discretion has a different moderating effect. Specifically, capital intensity strengthens the positive effect of performance pressure on cross-industry growth but weakens the negative effect of performance pressure on cross-international regional growth. State ownership enhances the positive effect of performance pressure on cross-domestic regional growth but decreases the negative effect of performance pressure on cross-international regional growth. CEO duality increases the negative impact of performance pressure on cross-international regional growth.Practical implicationsThis study provides several implications for top executives, including how to dialectically consider the double-edged effect of performance pressure on cross-boundary growth of firms, create an appropriate environments of managerial discretion and design the types of cross-boundary growth strategies that top executives can follow in the volatility, uncertainty, complexity and ambiguity era.Originality/valueAlthough the relevant literature highlights the importance of performance pressure, it has not been related to the cross-boundary growth of firms. This paper makes an incremental contribution to the literature on the forming mechanisms of firm’s cross-boundary growth by providing an important perspective of performance pressure to firm growth determinants and taking into account the moderating role of managerial discretion.

Distress Investing: An Analysis of Strategies and Risk-Reward Dynamics

Abstract: Distress investing is a specialized investment strategy that involves capitalizing on undervalued distressed assets with the anticipation of future recovery. This paper explores the historical background, evolution, and key principles of distress investing, emphasizing its importance in financial markets, especially during economic downturns. The literature review presents a comprehensive overview of distress investing research, summarizing key themes and research areas. It reviews seminal works and early studies related to distress investing, examining strategies such as distressed debt, equity, and turnaround investing. The role of macroeconomic and industry-specific factors in influencing distress investing opportunities is explored, along with valuation techniques for distressed assets and the impact of corporate governance. The research methodology outlines the objectives of the study and the data collection process, using financial databases, company reports, and academic journals. Criteria for sample selection and key variables used to evaluate distress investing strategies are identified, along with the analytical approach employed. The potential limitations of the research methodology are also acknowledged.

On the alignment of competitive strategies for successful acquisitions: a two-decade longitudinal analysis

PurposeMost studies explore the success of mergers and acquisitions through ex ante analyses based on the compatibility of resources and capabilities between the acquirer and target. As more than half of them fail, there seems to be room for enhancing our understanding of when and how acquisitions can actually improve firms' competitiveness. Diverging from these conventional approaches, the authors posit that attention should be at the strategic level. The purpose of this paper, therefore, is to explore the existence of compatibility between acquirers’ and targets’ competitive strategies and its effect on post-acquisition business performance.Design/methodology/approachThrough the Thomson Reuters Eikon financial and acquisition databases, the authors built a unique data panel of 174 acquirer–target matched acquisitions in the manufacturing sector from 24 different countries between 2000 and 2020. The authors used a two-step System-GMM approach to address the hypotheses proposed in this paper. This methodology allowed to isolate and easily compare the differential effects of each possible combination of strategic similarity and dissimilarity between the target and acquiring company on the latter’s post-acquisition strategies.FindingsThe need to unravel the motives behind successful acquisitions has gained enormous interest in recent years among academics and managers to improve – or maintain – firm competitiveness. Through a panel data of 174 acquisitions among manufacturing firms (2000–2020), this study shows that differentiated firms improve their business performance by acquiring firms with similar strategies; nevertheless, their performance worsens if the acquired firm follows a cost-leadership strategy. Concerning acquirers with a cost-leadership strategy, the lack of clear behavioral patterns suggests that the lower knowledge absorption capacity associated with these firms might be a decisive factor in being able to assimilate and efficiently exploit the acquired firm's knowledge.Originality/valueOverall, this approach offers a new and valuable perspective for practitioners because it improves understanding of the possible causes of merger failure and opens new attentions to consider in maximizing success and long-term competitiveness. The results of this study bring, thus, an unexpected result to this research: the importance of the acquirer’s strategy beyond the similarity or dissimilarity of the strategies of the acquirer and the acquired company.

Empowering Women through Digital Financial Inclusion: Comparative Study before and after COVID-19

The COVID-19 crisis seems to have disproportionately impacted women’s financial resilience. In fact, women’s economic involvement in the financial sector remains unequal. This study compares the impact of digital financial inclusion on women’s economic empowerment before and after the COVID-19 epidemic in Saudi Arabia. Using data collected from the Global Financial Inclusion Database for 2017 and 2021 and ordered probit models, the paper examines the relationship between economic women’s empowerment and digital financial inclusion. Findings indicate that using digital financial services has become more crucial since the pandemic. The results demonstrate that women now play a more significant economic role in decision-making than they did before the epidemic because they have access to a variety of digital financial services that could affect their choices and decisions. The findings are consistent with a number of previous studies, which found that financial digitization is a significant factor in women’s economic empowerment. The distinctiveness of this study is that it provides a recent assessment of Saudi women’s present financial circumstances and assesses current Saudi government initiatives to enhance women’s economic empowerment and leadership capabilities. The research conclusions provide insights for regulators and implications for future research in promoting digital financial inclusion and ensuring Saudi women’s economic empowerment.

Does alternative data reduce stock price crash risk? Evidence from third-party online sales disclosure in China

This study empirically investigates the effect of releasing alternative data on firm-specific price crash risk. Using the public launch of a firm's third-party online sales data in a well-known Chinese financial database as an exogenous shock, we find that stock price crash risk significantly decreases with the disclosure of third-party online sales data. The results are robust to a series of endogeneity corrections and robustness checks. We also find that the reduction of stock price crash risk is due to the decrease in managers' bad news withholdings and the increase in the accuracy of market expectations. In addition, the negative association between third-party online sales disclosure and crash risk is more pronounced for firms with weaker external governance, higher earnings volatility, greater likelihood of sales manipulation, and lower book-to-market ratio. Our findings yield important implications for a comprehensive understanding of the information disclosure effect of online sales data in the capital market and the mechanisms to reduce stock price crash risk.

Can Companies Reduce Carbon Emission Intensity to Enhance Sustainability?

With the rapid development of global industrialization and modernization, carbon emissions have brought about serious climate warming and environmental pollution problems. Chinese enterprises, as the major players in carbon emissions, are important in terms of promoting the green transformation of the economy. It is particularly important to investigate the relationship and mechanism of action between carbon emission reduction and corporate sustainable development in Chinese enterprises. This study aims to determine whether reducing the intensity of carbon emissions can make businesses more sustainable and to analyze the moderating influences of government environmental subsidies, media monitoring, and executives’ green opinions on the link between the two variables. The study sample consists of Shanghai and Shenzhen A-shares data from 2015 to 2020, and a fixed-effects model is employed for analysis. Data were obtained from the China Stock Market & Accounting Research database, the Financial News Database of Listed Companies, and enterprise financial statement notes, etc. Stata17.0 was used to clean and analyze the data. The results indicate that businesses can greatly improve their long-term viability by lowering their carbon emissions. Additionally, government environmental subsidies, media monitoring, and executives’ green perceptions all enhance the correlation between corporate sustainability and reduce carbon emission intensity. This study not only enriches the relationship between environmental governance and sustainable development from a theoretical perspective, but also further expands the stakeholder theory. It also finds the mechanism of the role of the government and media on corporate carbon emissions for sustainable development in practice, which provides effective guidance to accelerate the promotion of carbon emission reduction and, thus, the sustainable development of Chinese enterprises.

Financial inclusion and financial development: implications for monetary policy effectiveness and economic growth in sub-Saharan Africa

PurposeThis paper explores the implications of financial inclusion and financial development for the conduct of monetary policy in achieving price stability and economic growth in sub-Saharan Africa (SSA).Design/methodology/approachThe paper employs the system-generalized methods of moment (GMM) estimation technique using panel data spanning 2004 to 2019 and sourced from Databases of (International Monetary Fund's) IMF's Financial Access Survey (FAS), IMF's International Financial Statistics (IFS), World Bank's Global Financial Development Database (GFDD) and World Bank's World Development Indicators (WDI).FindingsThe authors find that financial inclusion has a double-edge effect in SSA. That is, it increases economic growth and lowers inflation in SSA. Furthermore, the results show that a simultaneous increase in financial inclusion and financial development have restrictive effects on economic growth. On the evidence provided, the authors conclude that financial inclusion is an important predictor of economic growth and the conduct of monetary policy in the sub-region.Originality/valueThis paper expands and contributes to the frontier of knowledge how financial inclusion is important for the conduct of monetary policy by monetary authorities in achieving its intended objectives in SSA. The paper highlights the need for ongoing enhancement of financial inclusion of many governments in the sub-region to achieving high economic growth and price stability. Thus, there is the need for policy makers to ensure that a more stringent, effective and appropriate policies and measures are put in place to enhance financial inclusion while taking into consideration the extent of financial development in SSA.