Risks and possibilities of the effect of financial inclusion on managing the financial security at the macro level

  • Received July 17, 2018;
    Accepted November 27, 2018;
    Published December 10, 2018
  • Author(s)
    Nataliia Zachosova
    ORCID ,
    Olena Herasymenko
    ORCID ,
    Аnnа Shevchenko
    ORCID
  • DOI
    http://dx.doi.org/10.21511/imfi.15(4).2018.25
  • Article Info
    Volume 15 2018, Issue #4, pp. 304-319
  • TO CITE АНОТАЦІЯ
  • Cited by
    8 articles
  • 1261 Views
  • 328 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The financial security state of the country directly depends on the amount of resources available in the financial system. Internal sources of financing of the economic and social needs may deprive the government of the necessity seek opportunities for obtaining external borrowings, which lead the country to the loss of financial autonomy. The financial inclusion of the population and business entities into the process of using financial products and services will stabilize the situation in the financial market by obtaining additional financial resources by its professional participants. At the same time, the lack of control of this process can lead to new threats for financial security at micro and macro levels. In view of this, the purpose of the study is to specify the opportunities and risks of financial inclusion for the financial security of financial intermediaries and the state as a whole. The object of the study was the level of financial inclusion, a set of factors that affect it, and a list of the consequences that its change may have for financial security. As the theoretical basis of the study, the reporting materials of financial market regulators were used, as well as information obtained from the application of such methods of scientific research as the analysis by which the level of financial inclusion in different sectors of the financial market was established, and the expert method implemented through surveys and questionnaires. Its use enabled to get a quantitative assessment of the level of financial inclusion of the population and economic entities. As a result of the study, the possible, positive consequences, risks and challenges of financial inclusion for the financial component of economic security are specified and systematized. The practical significance of the results of the survey is the possibility of developing on their basis the mechanisms for stimulating and controlling the level of financial inclusion by the financial market national regulators.

view full abstract hide full abstract
    • Figure 1. Assets of the financial market participants and microfinance institutions in Ukraine, UAH million, 2009–2018, as of the beginning of the year
    • Figure 2. Infographics of the results of the survey on the level of population and economic entities financial inclusion
    • Figure 3. Differentiation of financial services users into the categories of individuals and legal entities in different segments of the financial market, thsd. people, as of the beginning of the year
    • Figure 4. Dynamics of financial inclusion indicators in the field of joint investment institutions
    • Table 1. Some quantitative indicators of financial inclusion in Ukraine
    • Table 2. Indicators describing the state of financial inclusion in Ukraine according to The World Bank data in 2017 compared to 2014, % of people over 15 years old
    • Table 3. The reasons for the absence of financial accounts among the population of Ukraine according to The World Bank data in 2017, % of people over 15 years old
    • Table 4. Opportunities, risks and challenges of financial inclusion for the financial security of the citizens
    • Table 5. Opportunities, risks and challenges of financial inclusion for the financial security of economic entities (enterprises)
    • Table 6. Opportunities, risks and challenges of financial inclusion for the financial security of financial institutions
    • Table 7. Opportunities, risks and challenges of the financial inclusion for the state financial security
Related Articles

  • Perceived health risk, online retail ethics, and consumer behavior within online shopping during the COVID-19 pandemic

    Yuniarti FihartiniORCID , Arief HelmiORCID , Meydia HassanORCID , Yevis Marty OesmanORCID doi: http://dx.doi.org/10.21511/im.17(3).2021.02
    Innovative Marketing Volume 17, 2021         Issue #3         pp. 17-29 Views: 4455 Downloads: 1707 TO CITE АНОТАЦІЯ

    The risk of virus contracting during the COVID-19 pandemic has changed consumer preference for online shopping to meet their daily needs than shopping in brick-and-mortar stores. Online shopping presents a different environment, atmosphere, and experience. The possibility of ethical violations is higher during online than face-to-face transactions. Therefore, this study was conducted to investigate the influence of perceived health risk and customer perception of online retail ethics on consumer online shopping behavior during the COVID-19 pandemic, involving seven variables, namely perceived health risk, security, privacy, non-deception, reliability fulfillment, service recovery, and online shopping behavior. The data were collected through an online survey by employing the purposive sampling technique to a consumer who has shopped online during the COVID-19 pandemic in Indonesia. 315 valid responses were obtained and analyzed through quantitative method using SEM-Amos. The results showed that perceived health risk and four variables of online retail ethics including security, privacy, reliability fulfillment, and service recovery affected online shopping behavior. Meanwhile, non-deception was found to have an insignificant effect. The coefficient value proved perceived health risk to be more dominant in influencing online shopping behavior than the variables of online retail ethics. Thus, consumers pay more concern for their health during online shopping. However, positive consumer perceptions of the behavior of online retail websites in providing services also can encourage consumers to shop online during this pandemic.

  • Multi-agent modeling and simulation of a stock market

    Mohamed Amine SouissiORCID , Khalid BensaidORCID , Rachid Ellaia doi: http://dx.doi.org/10.21511/imfi.15(4).2018.10
    Investment Management and Financial Innovations Volume 15, 2018         Issue #4         pp. 123-134 Views: 2249 Downloads: 1110 TO CITE АНОТАЦІЯ

    The stock market represents complex systems where multiple agents interact. The complexity of the environment in the financial markets in general has encouraged the use of modeling by multi-agent platforms and particularly in the case of the stock market.
    In this paper, an agent-based simulation model is proposed to study the behavior of the volume of market transactions. The model is based on the case of a single asset and three types of investor agents. Each investor can be a zero intelligent trader, fundamentalist trader or traders using historical information in the decision making process. The goal of the study is to simulate the behavior of a stock market according to the different considered endogenous and exogenous variables.

  • The macroeconomic factors affecting government bond yield in Indonesia, Malaysia, Thailand, and the Philippines

    Benny Budiawan TjandrasaORCID , Hotlan SiagianORCID Researcher ID, Ferry JieORCID doi: http://dx.doi.org/10.21511/imfi.17(3).2020.09
    Investment Management and Financial Innovations Volume 17, 2020         Issue #3         pp. 111-121 Views: 2222 Downloads: 359 TO CITE АНОТАЦІЯ

    The government bond (GB) has become the most attractive investment portfolio option, even though many macroeconomic factors affect the bond yield. This paper aims to investigate the determining factor of local currency government bond yield by considering the inflation rate, credit default swap, stock market index, exchange rate, and volatility index. This study used 240 data panel from the Bloomberg stock market in the form of data panel covering Southeast developing countries, namely Indonesia, Thailand, Malaysia, and the Philippines, for five years or sixty months from January 2015 to December 2019. Data analysis used recursive models and multivariate regression techniques using EViews software. The random effect model results revealed that change in the foreign exchange rate and volatility indexes affected, partially and simultaneously, the changes in the stock market index. The result also showed that changes in the stock market index, inflation rate, and credit default swap affected, partially and simultaneously, government bond yield changes. These results suggest that the government bond yield could be managed by controlling volatility index, foreign exchange rate, stock market index, inflation rates, and credit default swaps. This finding could provide an insight into the policymaker and fiscal authority on managing the risk of government bonds under control during high volatility or even making it reasonably lower. This result could contribute to the current research in the field of financial management.

    Acknowledgment
    It is the author’s pleasure to thank Muhammad Aulia SE MSc CSA® from the Ministry of Finance of Republic Indonesia, for his invaluable contribution to encourage this study and also to share the data required for this paper. He also delivers essential insights into improving the quality of this work. This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.

Download Preview
Close
Investment Management and Financial Innovations
Investment Management and Financial Innovations