World Bank2014-01-102014-01-102013-05https://hdl.handle.net/10986/16563Conditions in global financial markets have eased since mid-2012, reflecting improvements in fiscal sustainability and the establishment of mutual support mechanisms in the European Union (EU), even as the global economic recovery remains fragile and susceptible to downside risks. South Africa's growth slowed from 3.5 percent in 2011 to 2.5 percent in 2012, reflecting primarily the sluggish external environment and domestic labor strife. Growth declined in 8 of the 10 major subsectors. Researchers, policymakers, and other financial sector stakeholders are becoming more interested in the transformative power of financial inclusion. In South Africa, expanding access to financial services for individuals and small enterprises could reduce the country's persistent income inequality and stimulate growth. South Africa, as Africa's only G20 member and as one of the BRICS, plays an influential global role, and progress in financial inclusion could thus have an important demonstration effect. While formal financial institutions offer an array of financial services, this Update focuses on formal payments, savings, and credit. Financial inclusion is vital because of the role of financial services in helping individuals and firms withstand income shocks and smooth spending. A well-functioning financial system produces and processes information on investment opportunities and allocates capital based on these assessments; monitors individuals' and firms' performance after allocating capital; facilitates the trading, diversification, and management of risk; mobilizes and pools savings; and eases the exchange of goods, services, and financial instruments.en-USCC BY 3.0 IGOACCESS INDICATORSACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCESS TO FINANCINGACCOUNT HOLDERSACCOUNT OWNERSHIPADMINISTRATIVE COSTSADVANCED ECONOMIESAGRICULTURAL FINANCEATM NETWORKSBALANCE SHEETBALANCE SHEETSBANK ACCOUNTBANK ACCOUNTSBANK BRANCHBANK BRANCHESBANK CHARGESBANK FEESBANK LENDINGBANKING SERVICESBANKING SUPERVISIONBANKSBARRIERS TO ENTRYBIG BANKSBOND MARKETBUSINESS ACTIVITYBUSINESS CONFIDENCEBUSINESS ENTERPRISESBUSINESS OPPORTUNITIESCAPITAL ADEQUACYCAPITAL FLOWCAPITAL FLOWSCAPITAL FORMATIONCAPITAL MARKETSCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCAPITAL STOCKCASH DEPOSITCASH FLOWCASH TRANSFERSCASH WITHDRAWALSCHAMBER OF COMMERCECO-OPERATIVE BANKSCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANKERSCOMMERCIAL BANKINGCOMMERCIAL BANKSCONSUMER CONFIDENCECONSUMER CREDITCONSUMER GOODSCONSUMER PRICE INDEXCONSUMER PROTECTIONCOOPERATIVE BANKCOOPERATIVE BANKINGCOOPERATIVE BANKSCOOPERATIVESCOST PRESSURESCREDIT ASSOCIATIONSCREDIT BUREAUSCREDIT CARDCREDIT COOPERATIVECREDIT COOPERATIVESCREDIT DEFAULTCREDIT DEFAULT SWAPCREDIT FACILITIESCREDIT FACILITYCREDIT GUARANTEESCREDIT HISTORYCREDIT INFORMATIONCREDIT MARKETCREDIT PROVIDERSCREDIT RATINGCREDIT RISKCREDIT SCORINGCREDIT UNIONCREDITSCURRENT ACCOUNTDEBIT CARDSDEBTDEBT SERVICEDEPOSITDEPOSITSDEVELOPING COUNTRIESDISCLOSURE REQUIREMENTSDISPOSABLE INCOMEDIVERSIFICATIONDOCUMENTATION REQUIREMENTSDOWN MARKETEARNINGSECONOMIC ACTIVITYECONOMIC DEVELOPMENTSECONOMIC GROWTHELECTRONIC PAYMENTELECTRONIC PAYMENTSEMPLOYEEEMPLOYMENT STATUSEMPLOYMENT STATUSESENTERPRISE CREDITEQUITIESEQUITY INVESTMENTSEXCHANGE RATEEXCHANGE RATESEXPENDITUREEXPORT EARNINGSFINANCESFINANCIAL ACCOUNTFINANCIAL ACCOUNTSFINANCIAL EDUCATIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIARIESFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL NEEDSFINANCIAL REGULATIONFINANCIAL SERVICEFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICESFINANCIAL SYSTEMFINANCIAL SYSTEMSFISCAL DEFICITFISCAL POLICYFIXED ASSETSFIXED CAPITALFIXED COSTSFOREIGN DIRECT INVESTMENTFORMAL BANKFORMAL BANKINGFORMAL ECONOMYFORMAL FINANCIAL INSTITUTIONFORMAL FINANCIAL INSTITUTIONSFORMAL FINANCIAL SERVICESGENDERGEOGRAPHIC ACCESSGOVERNMENT BONDGOVERNMENT BOND YIELDGOVERNMENT BONDSGOVERNMENT INTERVENTIONGROWTH OPPORTUNITIESHOUSEHOLD DEBTHOUSEHOLDSHOUSING FINANCEHUMAN CAPITALINDEBTEDNESSINEQUALITIESINEQUALITYINFLATIONINFORMAL BORROWINGINFORMAL CREDITINFORMAL LENDERINFORMAL SAVINGSINFORMATION ASYMMETRYINFORMATION ON INVESTMENTINFORMATION TECHNOLOGYINTEREST RATEINTEREST RATESINTERNATIONAL BANKINVESTMENT OPPORTUNITIESJOB CREATIONLABOR FORCE PARTICIPATIONLABOR FORCE SURVEYSLABOR MARKETLABOR MARKETSLACK OF COLLATERALLENDERSLIMITED ACCESSLOANLOAN DELINQUENCYLOW INTEREST RATESMARKET ECONOMIESMERCHANTMICROFINANCEMICROFINANCE INSTITUTIONMICROFINANCE INSTITUTIONSMONETARY POLICYMONEY TRANSFERSMORTGAGEMORTGAGE LOANNEW BUSINESSOPEN MARKETOUTREACHOVERDRAFTPARTIAL CREDITPAYDAY LOANSPAYMENT SERVICESPAYMENT SYSTEMPENETRATION RATEPOINT-OF-SALEPOST OFFICESPRIVATE CAPITALPRIVATE INVESTMENTPROFITABILITYPROPERTY MARKETSPUBLIC INVESTMENTPUBLIC POLICYPURCHASING POWERPURCHASING POWER PARITYREAL ESTATERECEIPTSRECESSIONREPAYMENTRETAIL BANKINGRISK PERCEPTIONSSAVINGS PRODUCTSSAVINGS RATESMALL BUSINESSSMALL BUSINESSESSMALL ENTERPRISESMALL ENTERPRISESSOCIAL DEVELOPMENTSOCIAL SECURITYSTOCK MARKETSTERM CREDITUNEMPLOYMENTUNEQUAL ACCESSUNIONURBAN AREASWHOLESALE FUNDINGWorld Bank10.1596/16563