The expansion of financial access has been promoted as a method to promote financial development for structural transformation. However, the linkages between expansion of financial access, financial development and financial stability are under-researched. The thesis seeks to contribute to research on these relationships using a mixed methodology with quantitative analysis of the balance sheet structures of institutions and interpretative fieldwork material from Kenya. It finds that as financial access has expanded there have been increases in credit, liquidity and foreign exchange risk at institutions and increasing systemic risks. Private capital inflows have encouraged these trends. There is limited mitigation of these risks through improved institutional capacity and financial architecture. Increased deposit mobilization has been achieved but it is not clear that it is incremental. Credit expansion has increased but has been developmentally suboptimal because of increased consumption lending. Interviews with the poor in urban and rural areas in Kenya found that barriers continue to the use of formal financial services but they are primarily 'voluntary'. The implications of the thesis are that alternative policy approaches need to be developed including macroprudential regulation, capital controls and cooperative banking. The thesis finds that the balance sheet approach offers a promising framework for further research, including developing a structuralist approach to financial development.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:707179 |
| Date | January 2015 |
| Creators | Tyson, Judith |
| Publisher | SOAS, University of London |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Source | http://eprints.soas.ac.uk/23755/ |
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