A Conceptual Understanding of Financial Inclusion and Financial Stability

ABSTRACT

Most developing countries today are making strides toward the ultimate objective of integrating financial inclusion into established institutions and culture. As time goes on, more and more people will notice this. Indeed, this is seen by everyone with eyes. This is done so that people in lower-income and otherwise disadvantaged groups in society can benefit from the policies that are put in place. As a direct consequence, this will make it feasible to preserve the economic budgetary equilibrium. Whether financial inclusion and financial stability are interdependent or independent occurrences, and which of these notions is more related to the attainment of higher economic growth, are the major questions that need to be answered here. Which of these theories also has the strongest link to a more prosperous future? Furthermore, which of these concepts has the most direct influence on the steps necessary to reach a more advanced stage of economic development? To examine the good and bad consequences that financial inclusion has on the attainment of financial stability, it is possible to focus on both positive and negative elements, and to do so within the same statement. This can be done to learn more about the potential benefits and drawbacks of financial inclusion in the pursuit of financial security. One possible perspective allows for equal weight to be given to the situation’s advantages and disadvantages. Therefore, the major focus of this research paper will be on the many facets of financial inclusion and financial stability in general, as well as the importance of these themes in promoting the growth and development of the national economy.    

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