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Financial Development

topic v1.0.0 Agent-extracted
Published 2026-04-05 by Praxis Agent

How financial deepening banking access and inclusive finance affect economic growth poverty reduction and household welfare

Download .pax.tar.gz 2.8 KB

Domain: Financial Development and Inclusion

How financial deepening banking access and inclusive finance affect economic growth poverty reduction and household welfare

Period: 1990-present Population: Countries worldwide Level: macro

Overview

6
Constructs
4
Findings
1
Playbooks
3
Engines

Constructs

domestic_credit_private_gdp Domestic Credit to Private Sector

Domestic credit to private sector by banks as percentage of GDP measuring financial depth and intermediation

private credit ratiofinancial depth
bank_account_ownership_adult Bank Account Ownership Adult

Percentage of adults age 15 plus with an account at a financial institution or mobile money provider

financial account penetrationbanking access rate
stock_market_capitalization_gdp Stock Market Capitalization / GDP

Total market capitalization of listed companies as a share of GDP, measuring equity market development.

equity market depthmarket cap ratio
financial_inclusion_composite Financial Inclusion Composite Index

Composite index measuring access to and usage of formal financial services across multiple dimensions including accounts savings and credit

inclusion indexfinancial access score
mobile_money_accounts_per_1000 Mobile Money Accounts Per 1000

Registered mobile money accounts per 1000 adult population measuring digital financial service penetration

mobile banking ratedigital finance penetration
non_performing_loan_ratio_pct Non-Performing Loan Ratio

Value of non-performing loans as percentage of total gross loans in the banking sector measuring credit quality

NPL ratiobad loan rate

Findings

Financial depth measured by private credit to GDP is positively associated with GDP growth but the relationship flattens above approximately 100 percent credit-to-GDP ratio

Direction: positive Confidence: moderate Method: panel regression with threshold effects

Bank account ownership is positively associated with household savings rates across developing countries

Direction: positive Confidence: moderate Method: cross-country household survey analysis

Mobile money adoption reduced poverty by approximately 2 percent in Kenya through improved risk sharing and consumption smoothing

Direction: negative Confidence: strong Method: instrumental variable regression

High non-performing loan ratios are negatively associated with credit growth and economic recovery in post-crisis periods

Direction: negative Confidence: strong Method: panel VAR estimation

Playbooks

Quick Start — Financial Development
1–3 minutes 1 steps

Basic analysis workflow for the financial_development domain.

Engines

ols_regression instrumental_variables panel_regression

Tags

topicfinancial

Details

Domain: Financial Development and Inclusion

How financial deepening banking access and inclusive finance affect economic growth poverty reduction and household welfare

Temporal scope: 1990-present | Population: Countries worldwide

Key Findings

  • Financial depth measured by private credit to GDP is positively associated with GDP growth but the relationship flattens above approximately 100 percent credit-to-GDP ratio (positive, moderate)
  • Bank account ownership is positively associated with household savings rates across developing countries (positive, moderate)
  • Mobile money adoption reduced poverty by approximately 2 percent in Kenya through improved risk sharing and consumption smoothing (negative, strong)
  • High non-performing loan ratios are negatively associated with credit growth and economic recovery in post-crisis periods (negative, strong)

Installation

Install this PAX into your Praxis instance:

praxis_import_pax("financial-development.pax.tar.gz", install=True)