EMNES Policy Paper 004 : Policy agenda for an inclusive, job-creating financial development in the Southern and Eastern Mediterranean

12-07-2019
EMNES Policy Paper 004 : Policy agenda for an inclusive, job-creating financial development in the Southern and Eastern Mediterranean
EMNES Policy Paper 004

Recent empirical evidence shows that financial development in the Southern and Eastern Mediterranean Countries (SEMCs) is lagging behind. The exclusion of a substantial part of households and micro, small and medium-sized enterprises (MSMEs) from financial services, hampers economic development and job creation in the region. Moreover, financial development suffers from the absence of institutional diversity, high inefficiency and prohibitive lending costs.

The objective of this policy paper is to review the most salient trends in financial development, to identify the main challenges and to provide policy recommendations to achieve financial development that is inclusive and that contributes to economic growth and job creation in SEMCs.