How socially sustainable multinational banks promote financial inclusion in developing countries

Ubeda, Fernando, Mendez, Alvaro ORCID: 0000-0002-0919-5081, Forcadell, Francisco Javier and López, Belén (2024) How socially sustainable multinational banks promote financial inclusion in developing countries. Research in International Business and Finance, 71. ISSN 0275-5319

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Abstract

This paper investigates the impact of multinational banks (MNBs) implementing socially sustainable practices on financial inclusion in developing countries. We argue that the specific characteristics of the MNBs, when combined with socially sustainable practices, contribute to building trust and reducing risks in developing countries where they operate. This positive externality causes improvements for the underprivileged in three dimensions of financial inclusion: their demand for bank accounts, their propensity to save, and their access to credit. A sample of 152 multinational banks in 32 developing countries and 37,952 individuals proves the positive effect of sustainable practices.

Item Type:	Article
Official URL:	https://www.sciencedirect.com/journal/research-in-...
Additional Information:	© 2024 The Author(s)
Divisions:	LSE
Subjects:	H Social Sciences > HG Finance
JEL classification:	G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O16 - Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Date Deposited:	16 Jul 2024 10:45
Last Modified:	20 Nov 2024 07:00
URI:	http://eprints.lse.ac.uk/id/eprint/124260

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