Financial intermediation and financial inclusion of the poor: Testing the moderating role of institutional pillars in rural Uganda

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dc.contributor.authorOkello Candiya Bongomin, George
dc.contributor.authorMunene, John C.
dc.contributor.authorMpeera Ntayi, Joseph
dc.contributor.authorAkol Malinga, Charles
dc.date.accessioned2022-05-25T19:18:02Z
dc.date.available2022-05-25T19:18:02Z
dc.date.issued2018
dc.description.abstractDrawing from the fact that institutions act as incentives and disincentives to human behaviour in financial markets, the purpose of this study is to examine the moderating role of institutional pillars in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. Design/methodology/approach – The study used cross-sectional research design and data were collected from the poor residing in rural Uganda. Statistical package for social sciences was used to analyse the data. Descriptive statistics, correlations and regression analyses were generated. Besides, ModGraph excel programme was adopted to graphically explain the moderating role of institutional pillars in the relationship between financial intermediation and financial inclusion of the poor in rural Uganda. Findings – The results revealed that institutional pillars of regulative (formal rules), normative (informal norms) and cultural cognitive (cognition) significantly moderate the relationship between financial intermediation and financial inclusion of the poor. Furthermore, the results also indicated that financial intermediation and institutional pillars have significant effects on financial inclusion of the poor in rural Uganda. Research limitations/implications – The study focuses on only cross-sectional design, thus, leaving out longitudinal study. Future research using longitudinal data that explore behaviours of the poor over time could be useful. In addition, only quantitative data were used to measure variables under study and use of qualitative data were ignored. Thus, further studies using qualitative data are feasible. Practical implications – Policymakers and advocates of financial inclusion in a developing country such as Uganda should adopt institutional pillars (regulative, normative and cultural-cognitive) in promoting financial intermediation in rural areas. The institutional pillars working in combination set the “rule of the game” or “humanly devise constraints” that guide economic exchange by promoting and limiting certain actions of actors in underdeveloped financial market as stipulated by North (1990) and Scott (1995). Originality/value – To the best of the authors’ knowledge, this is the first attempt to examine the moderating role of institutional pillars under the theory of institutions in the relationship between financial intermediation and financial inclusion of the poor in a developing country setting. Indeed, institutions guide contract enforceability and information sharing in human interaction to lower transaction cost in the financial markets. This is missing in literature and theory of financial intermediation in promoting financial inclusion, especially in rural Uganda.en_US
dc.identifier.citationBongomin, G. O. C., Munene, J. C., Ntayi, J. M., & Malinga, C. A. (2018). Financial intermediation and financial inclusion of the poor: Testing the moderating role of institutional pillars in rural Uganda. International Journal of Ethics and Systems. DOI 10.1108/IJOES-07-2017-0101en_US
dc.identifier.other10.1108/IJOES-07-2017-0101
dc.identifier.urihttps://nru.uncst.go.ug/handle/123456789/3370
dc.language.isoenen_US
dc.publisherInternational Journal of Ethics and Systemsen_US
dc.subjectInstitutional pillarsen_US
dc.subjectFinancial intermediariesen_US
dc.subjectPoor householdsen_US
dc.subjectRural Ugandaen_US
dc.subjectRegulative pillaren_US
dc.subjectRule of the gameen_US
dc.titleFinancial intermediation and financial inclusion of the poor: Testing the moderating role of institutional pillars in rural Ugandaen_US
dc.typeArticleen_US
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