Intermediation for Development: A New Index with a New Prospect

Ali Massoud

Abstract


This paper presents a construction of a new index that measures the role of banks in supporting pro-development activities and poverty alleviation. The index is called “Intermediation for Development Index (IFDI)”. It consists of four sub-indices (dimensional indices). The first sub-index is the Size Index (SI). It measures the size of a bank by its total assets and total deposits. The second sub-index is the Financial Intermediation Index (FII). It measures the function of a bank as a financial intermediary. The third sub-index is the Financial Orientation Index (FOI). It measures to what extent a bank is oriented to corporate vs. retail finance. The fourth sub-index is the Regional Orientation Index (ROI). It measures to what extent a bank is oriented to provide finance to the poorest region in the country.


Full Text:

PDF


DOI: https://doi.org/10.11114/aef.v2i3.910

Refbacks

  • There are currently no refbacks.


Paper Submission E-mail: aef@redfame.com

Applied Economics and Finance    ISSN 2332-7294 (Print)   ISSN 2332-7308 (Online)

Copyright © Redfame Publishing Inc.

To make sure that you can receive messages from us, please add the 'redfame.com' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

-------------------------------------------------------------------------------------------------------------------------------------------------------------