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An Examination of the Effects of Financial Inclusion on Banks’ Liquidity in Egypt

Year: 2025
Type: article
Abstract: Financial inclusion drives human development by promoting inclusive growth, economic development, and financial deepening.It has emerged as a critical enabler in reducing poverty and increasing prosperity.Financial inclusion has the potential to provide access to and active use of affordable financial products and services ranging from transactions to payments, savings, credit, and insurance to billions of currently unbanked adults.Egypt is widely regarded as having a low level of financial inclusion.Furthermore, the effect of financial inclusion on banks' stability has been largely ignored in current academic studies on the region.Financial inclusion was measured using one dimension, which is bank usage while stability was represented by bank liquidity.The research was built on financial intermediation theory, which was supported by finance growth theory and asymmetry information theory.In this regard, this paper intends to explore the relationship between financial inclusion and Banks' Liquidity in Egypt.The research employed a stepwise multiple regression analysis as a statistical method in order to examine the reliability of the hypotheses developed in the study.The sample data is derived from the World Bank's Global Findex along with the Bankscope database to help in understanding the impact of financial inclusion variables on the banks' liquidity.
Language: English
Open Access status: bronze
OpenAlex ID: W4406285740
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