In this paper, we investigate the impact of Islamic banking on financial inclusion in fourteen Middle East and North African countries. For this purpose, we employ a probit estimation method to 2014 World Bank Global Findex database, analyzing the association of individual characteristics and Islamic banking with financial inclusion among MENA countries with different level of development. We find that financial inclusion, particularly among middle income countries of MENA, are relatively worse than the world average. Our estimation model indicates that financial inclusion is positively affected by being a man, richer and being older in MENA. Interestingly, we find that education is not positively associated with formal account in the middle income countries but it is as expected in high income countries. We also document with empirical evident that Islamic banking contributes to financial inclusion especially for individuals with high degree of religion affiliation. Furthermore, estimates show t

Conference Title

3rd International Conference on Banking and Finance Perspectives (ICBFP)

Conference Country

Cyprus

Conference Date

April 25, 2018 - April 27, 2018

Conference Sponsor

EMU

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