There is an influence of the volume of private credit to the private sector on the Financial Inclusion Index, What is the economic explanation for this
unfavorable monetary policy and weak regulatory framework have vacuum or gaps that this access of massive private credit mobilization to private sector hence exerbating financial inclusion index among others influencing factors
I believe trust in the existing financial system is a major cause for this shift. Private credit similar to private equity in large corporations like insurance or pension/mutual funds raise capital from their investors and thus, they prefer to eliminate financial intermediaries by lending directly to other firms profitably. This is extremely legal and as pointed out by Genberg (2007), we are slowly approaching that time with little to no financial intermediation.
The financial sector is large enough for inclusiveness. I played in this sector ever since i had an account opened in AMAFA ETUPU OLUFUNMILAYO. I personally feel that we need to improve on access to funds, we need to patronize our Development Financial Institutions like Bank of Industry who is given to establishing industries and more importantly rehabilitate the dying ones.-
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