Financial Inclusion, Credit Booms, and Financial Stability Risk

2026

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AI-generated summary

1) This paper investigates how financial inclusion and credit booms interact to predict financial instability, offering crucial insights for policymakers' early warning systems.

2) * Examines the complementarity between credit booms and rapid expansion of the borrower base in predicting financial distress.
* Finds that rapid credit inclusion, especially when combined with a credit boom, significantly increases the likelihood of future financial instability.
* Suggests that monitoring credit inclusion alongside credit growth can enhance early warning tools for financial policymakers.

3) Financial inclusion, credit booms, financial stability, early warning indicators, financial distress

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