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Showing posts from March, 2018

What are the Core Objectives of Financial Policy for any country? Present Context

A) Financial inclusion The definition of financial inclusion (FI) varies from country to country depending on national objectives, but it is commonly understood as a way to provide financial services to those who do not have them. FI embraces three core elements: access, usage  and  quality of financial services. The GPFI has defined FI as “a state in which all  working age  adults have effective access to credit, savings, payments, and insurance from formal service providers.”3 Financial inclusion allows the unbanked and underbanked segments of society to join the formal financial system, which ultimately helps to alleviate poverty, promote job security, security and improve livelihoods and advance social empowerment. B) Financial stability The South African Reserve Bank has defined financial stability as the smooth operation of a system of financial intermediation between households, firms and the government through a range of financial institutions. FI an...