Promotion Of Financial Inclusion Research Articles

Managing Inclusion and Financial Education for Sustainable Development

Objective: The objective of this study is to analyze the importance of effective management of financial inclusion and education in the context of sustainable development, highlighting its impact on the achievement of the SDGs. It also aims to identify the main challenges faced by vulnerable populations in accessing financial services and propose comprehensive strategies to improve financial literacy and accessibility, contributing to a more inclusive and equitable society. Theoretical Framework: For this research we have several relevant approaches and theories such as: financial inclusion theory; its relationship with the SDGs; financial education theory, as well as inclusion and sustainable development. Method: The methodology adopted for this research comprises a qualitative approach, based on the review of documents, public policies and government programs on financial inclusion and education to assess their effectiveness with respect to the SDGs. Data from the World Bank's Data Dashboard (The Global Findex Database, 2024) was analyzed using content analysis, which allowed identifying key themes and gaining a deeper understanding of the perceptions and experiences related to the evaluated programs.. Results and Discussion:The results obtained revealed that, although there is progress in financial inclusion in Mexico, there are still areas of opportunity to improve access to and use of financial services, especially among the most vulnerable segments of the population. It is necessary to highlight the need to continue working on the promotion of financial inclusion in Mexico and in other regions, through public policies that promote financial education, technological innovation, and collaboration between the public and private sectors. Research Implications: The practical implications of this research include the improvement of public policies and programs focused on financial inclusion and education, promoting more equitable access to financial services in vulnerable populations. At a theoretical level, the study provides a deeper understanding of the relationship between financial management and sustainable development, offering a conceptual framework that links financial inclusion with the SDGs. This strengthens the academic analysis on how financial education can drive inclusive economic growth. Originality/Value: The originality and value of this research lies in its focus on the direct relationship between financial inclusion and financial education with the SDGs, an area underdeveloped in the literature. The research offers a new perspective by assessing how financial education can be a key tool for achieving equitable and sustainable development. Its contribution to the literature is in providing a detailed analysis of public policies and government programs, highlighting their effectiveness and identifying areas for improvement, which brings a comprehensive and updated approach to the study of financial inclusion.

Parametric Analysis of Mobile Money Adoption and Women Financial Inclusion in Kogi State - Nigeria

An ever-increasing body of research and empirical evidence has demonstrated the positive impact of mobile money on individuals, households and businesses, especially in Sub-Saharan Africa, where there were almost 400 million registered accounts at the end of 2018. Mobile money reduces transaction costs for users and helps households to better manage their cash flows; it allows firms to invest and build capital over time, fostering the creation and expansion of business; and it facilitates faster and more efficient government transfers. These benefits have enabled many mobile money users to realise significant quality of life improvements. However, the impact of mobile money on women financial inclusion has not been fully analysed or investigated. To address this evidence gap, this study assesses the impact of mobile money across twenty-on (21) local governments areas of Kogi state - Nigeria. Something which, to our knowledge no previous study has done. This study explores the parametric effect of mobile money on women financial inclusion using cross-sectional data collected from 400 women across twenty-one LGAs of Kogi state in Nigeria. The probit regression results illustrate that mobile money is significant and positively related to women financial inclusion in Kogi state. In addition, economic activity positively plays a significant role in improving women financial inclusion, while gender discrimination and family financial resilience inversely reduces women financial inclusion in the state. Based on these empirical results, this study recommends the following. First, it is important that government at all level devise means to ensure and broaden usage of mobile money by of provision of communication networking, and internet services, especially in rural areas. This will go a long way in aiding and increasing individuals’ usage of mobile phone and money, hence promotion of financial inclusion among women. Secondly, there is need to enhance women economic engagement, most especially in the rural areas. This will boost their financial transactions, savings, and financial stability, thus stimulate their financial inclusion. Thirdly, while it may be unrealistic for gender equality but there is need to enforce gender discriminating law to give women sense of belonging and full participation to thrive their financial inclusion. Lastly, government at local level are also advised to increase and ensure financial stability and support families in building financial resilience. This can increase women financial inclusion.

Challenges of achieving financial inclusion for individuals with visual impairments

This research paper evaluates the success of the Financial Inclusion Strategy announced by the Palestinian Monetary Authority (PMA) (2018–2025) in achieving financial inclusion for the visually impaired in Palestine as a poor and marginalized group within the strategy's purview. Although the promotion of financial inclusion is widely acknowledged as a crucial means to achieve economic development objectives, there remains a gap in national research concerning the willingness of banks in Palestine to develop their services to cover individuals with visual disabilities. This research aims to explain the reasons behind the financial exclusion of this group and highlight the areas where support is needed to overcome these reasons. A free discussion was conducted with representatives of all banks operating in Palestine to conclude their satisfaction regarding the financial inclusion of visually impaired individuals and to gain insight into their perspectives on the challenges they face for this inclusion. The collected data were systematically tabulated. Similar responses were consolidated under each question, and discrepancies between the symbols were emphasized. The commonalities and variances in respondents' answers were scrutinized, categorized, and juxtaposed with findings from analogous research conducted in other jurisdictions. The research revealed that insufficient financial knowledge, a lack of adaptive technologies, communication barriers, and elevated rates of poverty and unemployment account for the hesitancy of commercial banks to extend financial services to individuals with disabilities. The research concluded that commercial banks are not interested in attracting this group, so the Monetary Authority is recommended to legislate a checklist of specific obligations that consider these challenges for banks operating in Palestine to ensure financial inclusion for this group.

Theoretical frameworks for regulatory compliance in Fintech innovation: A comparative analysis of Africa and the United States

This review paper conducts a comparative analysis of the theoretical frameworks for regulatory compliance in fintech innovation between Africa and the United States. It explores the regulatory objectives, compliance mechanisms, enforcement strategies, and the role of innovation in shaping the fintech landscape. The study highlights key similarities and differences, emphasizing the importance of adaptability, consumer protection, and the promotion of financial inclusion. It also discusses the implications for policymakers and regulatory bodies, recommending strategies for fostering innovation while ensuring robust compliance. The paper concludes by identifying future research directions, focusing on the impact of emerging technologies and international regulatory cooperation. This analysis underlines the need for dynamic regulatory frameworks that balance innovation with financial stability and consumer protection in the rapidly evolving fintech sector. Keywords: Fintech Innovation, Regulatory Compliance, Financial Inclusion, Consumer Protection, Emerging Technologies, International Cooperation.

Financial Socialisation and Promotion of Financial Inclusion, among Women Self-Help Group Members: An analysis

India, a country of diversities has travelled a long way in the process of achieving inclusive growth through financial inclusion. The expedition has started from bank nationalisation in the year 1969 to flagship programs like SHG bank Linkage and PMDJY. Historically, women in India have faced various socio-economic challenges, including limited access to financial services and opportunities. To address these challenges and promote the financial inclusion of women, several initiatives and measures have been taken at the government, regulatory, and institutional levels. The PMJDY accounts have shown a remarkable growth in account openings. Around 50.09 Crore Jan Dhan accounts opened as of Aug 2023 where average deposits rise from Rs.1065 crore in 2015 to Rs.4087 Crore in 2023,nearly 3 times over Aug 2015. Around 56% of such accounts are owned by woman, whereas 67% of the accounts are owned by women in rural and semi urban areas (PIB 2023)[i]. But what is more discouraging is that India has the highest in inactive accounts which is 35% globally. In developing economies, women account owners are, on average, 5 percentage points more likely than men are inactive, in India the deviation is highest that is 12 %.Out of the women owned accounts, more than 32% are inactive. The usage of accounts also indicates a different saga as most of them is used for withdrawals of salary or wages, emergencies, or availing Govt. Benefits which leads to a lowering of financial inclusion among the women (Global Findex database 2021)[ii].
 
 It's important to note that despite many advancements achieved by the country with respect to the financial inclusion of women through initiations like PMJDY, introduction of a range of women-centric financial products, such as savings accounts, fixed deposits, and insurance policies, often with special features and incentives, SHGs movements, development of digital financial ecosystem for women in rural areas to access financial services through mobile banking and digital wallets, undertaking financial literacy programs and campaigns aimed at women for improving their financial knowledge and decision-making capabilities, legal reforms related to property rights and inheritance rights, support for Women Entrepreneurs including access to credit, training, and mentorship, and by allocating funds specifically for women's welfare and empowerment through gender budgeting, the challenges still prevailing. The gender gap in financial inclusion still exist, with women in rural and marginalized communities facing more significant barriers. Social and cultural factors, limited financial literacy, and the persistence of gender-based violence in some regions were among the ongoing challenges (Fletschner & Kenney, 2011[iii]). The need for ongoing education and awareness programs, addressing gender biases, and expanding access to financial services in remote areas etc. remain the priorities of the policy makers. Achieving full financial inclusion for women in India requires a multi-faceted approach involving government policies, financial institutions, civil society organizations, and the active participation of women themselves. It is essential for both economic development and gender equality (Duflo, 2012[iv]; Bucciol et.al, 2022[v]).

Financial inclusion, education, and employment: empirical evidence from 101 countries

This study analysed the data of 101 countries from the World Bank’s Financial Inclusion and Financial Availability Survey databases for the years 2011, 2014, 2017, and 2021. It constructed a new financial inclusion evaluation index system using digital empowerment and established a dual fixed-effect panel data regression model to examine the impact of financial inclusion on employment. The study also considered the moderating effect of education on financial inclusion affecting employment. The results indicate that financial inclusion is beneficial to improving employment levels. The level of education development is proportional to the level of employment, and it has a regulatory effect of promoting the financial inclusion’s positive impact on employment level. The heterogeneity analysis demonstrates that the effect of financial inclusion on improving employment levels is greater in female groups. The promotion of financial inclusion is the largest in low- and middle-income countries, followed by high-income countries, indicating that financial inclusion must have a certain economic foundation to fully play its role, and it has more obvious benefits for relatively poor and weak areas than for high-income areas. The conclusions of this study have implications for improving employment and augmenting financial inclusion.

Price Stability and Economic Development in Nigeria: Issues and Challenges

Price stability and economic development are crucial factors for the growth and prosperity of a nation. This study focuses on examining the issues and challenges related to price stability and economic development in Nigeria. The accumulation of public debt, volatility of crude oil prices, challenges in renewable energy penetration, the role of monetary policy, government expenditure, and financial inclusion are key areas of investigation The study adopted qualitative research method. The findings reveals that public debt has a positive relationship with economic growth, but its impact may vary depending on factors such as governance and debt sustainability. The implications of these findings are discussed, emphasizing the need for effective debt management, diversification of the economy, enhanced monetary policy effectiveness, strategic government expenditure, and promotion of financial inclusion. These recommendations can guide policymakers in formulating strategies and policies to promote price stability and foster sustainable economic development in Nigeria. Overall, this study contributes to the understanding of the issues and challenges related to price stability and economic development in Nigeria, providing valuable insights for policymakers, researchers, and stakeholders in the pursuit of economic growth and stability.

A STUDY ON FINANCIAL SCALABILITY CHECK ON INDIAN SMALL DEVELOPMENT BANKS

This study examines the financial scalability of small development banks in India by conducting a thorough analysis of their financial statements, risk management policies, and growth strategies. The research aims to evaluate the banks' ability to sustain growth while maintaining their financial stability and minimizing risks. The study also investigates the role of regulatory bodies in ensuring financial scalability in small development banks. The findings suggest that while small development banks in India have demonstrated significant growth potential, there is room for improvement in their risk management practices and diversification of funding sources. Small Finance Banks are recent banking initiative of Reserve Bank of India towards promotion of financial inclusion in India. Ten Small Finance banks operate actively across India and most of them got scheduled bank status. Small Finance Banks have a lot of challenges in terms of branch establishment, lending, deposit mobilization and operating expenses. The Small Finance banks need to survive and sustain despite all the challenges mentioned and to meet the objective of existence – Financial Inclusion. This article studies about Small Finance banks and small development banks.

Exploration of Marketing Strategies of Rural Financial Institutions in the Context of Internet Finance--Bank A as an Example

As an essential component of China's financial institution system, the development and operation of rural financial institutions are of great significance to the economic development of capital financing, the improvement of the "Issues concerning agriculture, rural areas, and farmers," and the promotion of financial inclusion in rural areas and urban-rural areas of China. On this premise, based on the impact of Internet finance on rural commercial banks and the comparison between rural commercial banks and other commercial banks, this paper briefly discusses the improvement direction of marketing strategies of rural commercial banks using the traditional 4P theory as an example. In terms of products, we can learn relevant technologies from large commercial banks and actively develop products that meet customers' needs; the pricing strategies of commercial banks or financial institutions in different rural areas should be focused, and product prices can be dynamically adjusted according to the background of the general environment rather than fixed; at the same time, we should deepen offline sales channels and actively open online channels, combining online and offline media; finally, agricultural commercial banks should adhere to the principles of innovation. Finally, agribusiness banks should comply with the principles of invention, stability, and compliance and pay attention to adopting technology for risk control.

Financial Performance Analysis using CAMEL Model with Special Reference to Listed Small Finance Banks in India

Banking sector plays a vital role for the development of Indian economy. Over the past few years banking industry has gone through many changes. Small Finance Banks are recent banking initiative of Reserve Bank of India towards promotion of financial inclusion in India. The small finance banks in India play a prominent role as these banks provide services to the financially unincluded population. These banks provide basic services to the small-scale farmers and micro and small-scale industries. These banks will help in boosting the economy of the country as they provide services to major population of the country. The study is related to a period of five years from financial year 2017-2018 to 2021-2022. The study contains an assessment of the performance of SFBs using CAMEL Model. The analysis helped to measures the performance of banks from each of the important parameter like Capital Adequacy, Assets Quality, Management Efficiency, Earning Quality and Liquidity.

Assessing the Effects of Financial Inclusion on Reducing Poverty and Income Inequality in South Asia: Evidence from a CS-ARDL Approach

This study aims to examine the effects of financial inclusion on poverty reduction and income inequality with a focus on South Asian economies from 2004 to 2020 by employing dynamic panel models augmented with a comprehensive composite financial inclusion index and a set of well-known macroeconomic predictors. The primary results confirm the long-run relationships between financial inclusion, poverty headcount ratio and the Gini index, while the results of the cross-sectionally augmented autoregressive distributed lags model indicate that financial inclusion is significantly effective in reducing poverty and income disparities. Moreover, the findings reveal that real per capita income, institutional quality, age dependency ratio, credit to the private sector, inflation rate, school enrolment rate, trade openness, ratio of mobile users, and information and communication technologies are highly significant in intermediating the aggregate effects of financial inclusion on reducing poverty and income inequality. The findings clearly show that the greater impact of financial inclusion on reducing poverty and income inequality is primarily based on the development, enhancement and promotion of financial inclusion in South Asian economies, where the financially excluded segment constitutes a significant proportion of society.

TransBoost: A Boosting-Tree Kernel Transfer Learning Algorithm for Improving Financial Inclusion

The prosperity of mobile and financial technologies has bred and expanded various kinds of financial products to a broader scope of people, which contributes to financial inclusion. It brings non-trivial social benefits of diminishing financial inequality. However, the technical challenges in individual financial risk evaluation exacerbated by the unforeseen user characteristic distribution and limited credit history of new users, as well as the inexperience of newly-entered companies in handling complex data and obtaining accurate labels, impede further promotion of financial inclusion. To tackle these challenges, this paper develops a novel transfer learning algorithm (i.e., TransBoost) that combines the merits of tree-based models and kernel methods. The TransBoost is designed with a parallel tree structure and efficient weights updating mechanism with theoretical guarantee, which enables it to excel in tackling real-world data with high dimensional features and sparsity in O(n) time complexity. We conduct extensive experiments on two public datasets and a unique largescale dataset from Tencent Mobile Payment. The results show that the TransBoost outperforms other state-of-the- art benchmark transfer learning algorithms in terms of prediction accuracy with superior efficiency, demonstrate stronger robustness to data sparsity, and provide meaningful model interpretation. Besides, given a financial risk level, the TransBoost enables financial service providers to serve the largest number of users including those who would otherwise be excluded by other algorithms. That is, the TransBoost improves financial inclusion.

A Legal Analysis of the Use of Innovative Technology in the Promotion of Financial Inclusion for Low-Income Earners in South Africa

The promotion of financial inclusion is important for the combating of financial exclusion in many countries, including South Africa. Nonetheless, most low-income earners living in rural areas and informal settlements are still struggling to gain access to basic financial products and financial services in South Africa. This status quo has been caused by a number of factors such as the absence of an adequate financial inclusion policy, the geographical remoteness of financial institutions to most low-income earners, rigid identity documentary requirements, a lack of access to reliable and affordable Internet connection by low-income earners living in informal settlements and rural areas, a lack of financial illiteracy, the high costs of financial services, unemployment and poverty, over-indebtedness, and cultural and psychological hindrances to low-income earners in South Africa. Consequently, these factors have somewhat limited the access to financial services offered by financial institutions to low-income earners living in rural areas and informal settlements. In many countries, including South Africa, the financial sector is relying on innovative technology, especially in banking institutions, to aid in the offering of financial services to their customers. It is against this background that this article discusses selected legal and related challenges affecting the regulation and use of innovative technology to promote financial inclusion for low-income earners in South Africa. The article further discusses possible measures that could be adopted by the government, financial institutions and other relevant regulatory bodies to promote the use of innovative technology to combat the financial exclusion of low-income earners in South Africa.

The Nexus between Mobile Money Regulation, Innovative Technology and the Promotion of Financial Inclusion in Zimbabwe

The advent of mobile money innovations has given people in rural areas, informal settlements and other poor communities an opportunity to participate in Zimbabwe's mainstream financial economy. However, the technology-driven money services have presented some challenges to the traditional banking sector in general and the regulation of financial services in particular. Firstly, most mobile money services are products of telecommunication corporations, which are not banks. Telecommunication companies use their network reach to provide mobile money services via mobile devices at a cheaper cost than banks across the country in Zimbabwe. As such, banks face unprecedented competition from telecommunications companies that are venturing into financial services. It also appears that prudential regulation of banks cannot keep up with the fast pace at which technological innovations are developing and this has created a disjuncture between the regulation and the use of technological innovations to promote financial inclusion in Zimbabwe. The Banking Act [Chapter 24:20] 9 of 1999, the Reserve Bank of Zimbabwe Act [Chapter 22:15] 5 of 1999 and the National Payment Systems Act [Chapter 24:23] 21 of 2001 have a limited scope in terms of the regulation of mobile money services in Zimbabwe. The Ministry of Finance and Economic Development launched the National Financial Inclusion Strategy (NFIS) 2016-2020 to provide impetus to the financial inclusion of the poor, unbanked and low-income earners in Zimbabwe. However, the NFIS appears to push more for bank-led financial inclusion than it does for innovation-driven initiatives such as mobile money services. This article highlights the positive influence of mobile money services in improving financial inclusion for the poor, unbanked and low-income earners in Zimbabwe. The article also seeks to point out gaps and flaws in the financial services regulatory framework that may limit the potential of mobile money services to reach more people so that they actively participate in the Zimbabwean economy. It is submitted that the Zimbabwean mobile money services regulations and the financial regulatory framework should be carefully amended in line with the recent innovations in mobile money to adequately regulate the use of mobile money services and innovative technology to address the financial exclusion of the poor, unbanked and low-income earners in Zimbabwe.

Financial inclusion enhancement through the adoption of Islamic microfinance in Nigeria

Purpose This paper aims to examine the determinants of intention to adopt Islamic microfinance among prospective customers in Nigeria, to enhance access to formal financial services. Design/methodology/approach The quantitative study used the proportionate stratified random sampling technique to collect data from 450 respondents, using close-ended questionnaires. The data was analyzed using analysis of moment structures-structural equation modeling. The decomposed theory of planned behavior (DTPB) was used as the underlying theory to test 10 hypotheses. Findings Results showed the intention toward the adoption of Islamic microfinance is high in Nigeria. In total, 8 of the 10 study hypotheses were supported, out of which attitude, subjective norm and perceived behavioral control were found to have a positive and significant influence on the behavioral intention to adopt Islamic microfinance. Consequently, the study recommends the need for stakeholders in the Nigerian financial system to embark on enlightenment campaigns that will improve the public attitude on the role of Islamic microfinance banks in the promotion of financial inclusion and poverty reduction. Research limitations/implications The study focused specifically on three selected states in Northern Nigeria that are predominantly Muslim. The findings and indeed the conclusions of the study, may not be suitable for generalization to other parts of the country. Practical implications The study found that three constructs: attitude, subjective norms and perceived behavioral control were found to affect behavioral intention. Thus, the Central Bank of Nigeria and Islamic financial institutions should tailor their enlightenment campaigns toward improving public attitude on the need to adopt Islamic microfinance banks to further enhance financial inclusion, and thus reduce the incidence of poverty. Islamic microfinance banks should complement their commercial products and services with Islamic social finance products such as Sadaqat, Zakat and benevolent loan, as is the practice in jurisdictions where Islamic finance is institutionalized. Social implications The social implication of the study is its ability to determine factors that will enhance financial inclusion in Nigeria. This will assist in reducing poverty and income inequality. Originality/value The study was also able to extend the DTPB by introducing awareness as an additional latent construct in explaining attitude.

The persistence of credit–labor interlinked transactions in rural Myanmar: The case of Kanyingu Village in Ayeyarwady Delta

Financial inclusion has been one of the key agendas for poverty reduction in development practices since the mid-2000s. However, informal finance has clearly not been completely replaced by formal finance in the Global South. This study examines labor-tying credit, which is one type of informal finance, and based on a case study in the Delta region of Myanmar, the study explores the reason for which it persists despite the promotion of financial inclusion policies.This paper found that credit–labor interlinked credits or advance wage payments from farmers to agricultural laborers persist because subsistence is still the key element of life for the poor in rural Myanmar. Formal finance, which includes microfinance and conventional types of informal finance such as credit from money lenders, is only a partial substitution. The poor must stabilize consumption or meet other basic needs in the lean season, and there is no better option or credit source available. In the reality of the subsistence-oriented poor, “How much is left?” is more important than “How much is taken?” Therefore, the high interest rates involved in labor-tying credit is not the major concern of its recipients because of the immediacy of such advances.

The Promotion of Financial Inclusion in Argentina Through Fintech

The Promotion of Financial Inclusion in Argentina Through Fintech

Understanding China’s fintech sector: development, impacts and risks

Financial technology (fintech) is rapidly transforming the economy as well as the financial landscape in China. This paper attempts to shed light on its contributing factors, current state, economic impacts and potential risks. We identify three key drivers for China’s fintech development, namely shortage of supply in formal financial market, strong government support for promoting financial inclusion through digital technology, and more ‘tolerant’ regulatory environment. The greatest value of the Chinese fintech sector is promotion of financial inclusion, enabling a vast number of small- and medium-sized enterprises (SMEs) and low-income households to access to financial services. Existing studies unveil some strong evidences of fintech development improving efficiency, increasing employment and supporting entrepreneurship. In the meantime, there are also serious challenges facing this sector, such as regulatory uncertainties, illegal transactions, data abuse, etc. We conclude the paper by presenting some key takeaways, including several lessons for financial regulation.

Institutional determinants of financial inclusion: evidence from world economies

PurposeFinancial inclusion is an approach for mobilizing saving and facilitating investments that help promote economic development and pave the way for sustainable development. This paper aims to examine the impact of world governance indicators (WGIs) on the improvement of financial inclusion across world economies.Design/methodology/approachThis paper uses the global database of financial inclusion indicators (global findex) for the years 2011, 2014 and 2017. The WGIs are used as proxies for the effects of governmental institutional arrangements. Using panel data analysis, a fixed generalized linear model is estimated for four common financial indicators; namely, borrowed from a financial institution, saved at a financial institution, credit card and debit card ownership.FindingsThe empirical results reveal that control of corruption, government effectiveness, political stability and voice and accountability are the significant WGIs that influence financial inclusion significantly.Originality/valueThis paper contributes to the literature in two ways. First, this paper offers validating the results previously reported in related studies. Second, this paper offers robust estimates of the effects of the institutional WGIs on the promotion of financial inclusion.

Ambiguity in international finance and the spread of financial norms: the localization of financial inclusion in Kenya and Nigeria

Despite powerful pressures for convergence towards global financial norms we do not see uniform outcomes across the globe. Instead, local agents seek to adapt foreign agendas to local conditions. While scholarship has illustrated the localization of global norms, we still lack a systematic understanding of why certain localized norms emerge and how we can explain agency in the face of pressures for policy convergence. I offer an analysis of the spread of the financial inclusion agenda to highlight the role that ambiguity in global financial norms and the structural dependence on capital play in explaining the emergence of specific localized norms. Using case studies of central bank promotion of financial inclusion in Kenya and Nigeria, I argue that the ambiguity of the concept of financial inclusion made it compatible with the pre-existing beliefs of local central bankers and helped them to navigate their socio-political environments to implement their preferred vision of financial inclusion. The cases also show that while ambiguity enhances agency, the structural dependence on capital constrains it. More broadly, the study highlights the constructive role ambiguity may play in the spread of financial norms and the agency developing countries may exercise in their engagement with global norms.