Resources

This edition of the Global Findex Database emphasizes the expansion of financial inclusion during the COVID-19 pandemic. It highlights that 76% of adults globally now have an account at a financial institution or mobile money provider, marking a significant increase over the past decade. The report explores the rise in digital payments and financial services, documenting substantial regional variations and the remaining gaps in financial access. It also discusses the impacts of these changes on economic resilience and recovery.

This paper explores the complex dynamics between financial development, growth, and stability. It introduces a new comprehensive Financial Development (FD) index encompassing banking and non-banking institutions, as well as market depth, access, and efficiency. The study confirms a positive relationship between financial development and economic growth but notes diminishing returns at higher levels of financial development, highlighting potential trade-offs with financial stability.

This report investigates the role of financial development in facilitating economic growth in developing Asia. It focuses on how financial development serves as a channel for capital flows, particularly exploring the paradox where capital inflows are not necessarily aligned with regions of higher productivity growth. The analysis reveals that while debt investments and portfolio equity often exhibit a negative correlation with productivity in these economies, financial development can substantially neutralize this effect. This is particularly effective in the initial stages of financial development and as economies approach a productivity frontier. However, the study also notes diminishing returns at higher levels of financial development, highlighting potential trade-offs with economic growth.