THE DETERMINANTS OF FINANCIAL INCLUSION IN LATIN AMERICA AND EUROPE (BRAZIL AND ROMANIA CASE).

The aim of this paper is to examine the level and determinants of financial inclusion in Latin America and Europe and especially in Brazil and Romania based on the Global Findex database. We found that income and education contribute to greater financial inclusion as they are positively related to having a formal account and this finding supports the view that policies favoring financial inclusion should target certain groups of population such as women and young people. Our main conclusions found that the level of financial inclusion in Brazil and Romania is high relative to comparable countries. Financial inclusion, as measured by the ownership of a formal account, does not create a major problem in both countries. Brazilian and Romanian authorities could nonetheless improve the ownership of a formal account by dismantling obstacles related to income and education, all of which found more long-run issues. In summary, our work contains findings of particular interest to design policies to improve financial inclusion in Brazil and Romania. It stresses the role of policies targeting groups of population particularly affected by financial Inclusion and identifies the main obstacles they face. [ABSTRACT FROM AUTHOR]