Michigan Journal of Public Affairs - Volume 18 2021

Chile, tion as legitimate businesses, they have often been exclud- Barbados, Brazil, and Peru rank the highest in the region, ed from the mechanisms of financial support that would and overall, the percentage of SMEs with a line of credit offer the capital necessary to build critical infrastructure is similar to that of Asia (46 to 48 percent respectively).27 and provide adequate security for thei. [...] In the case of creating more sim- charge of designing and implementing the financial plified banking services for the underserved, the education policy and enhancing the financial inclu- rules state that financial institutions must have sion policy.34 procedures in place to verify the content and • “The Financial Inclusion Law” (Law 1735): creat- identity of customers, but do not provide further e. [...] Final- what the author described as a “creditable achievement” ly, Part IV sets forth a proposal to redefine financial in- for the country and one that addressed the “basics” of clusion by drawing on the realities of the global financial financial inclusion.3 If the principal requirement for fi- frameworks, traditional and otherwise, that are in place nancial inclusion is access to a bank account,. [...] consumers neatly into “the banked and the unbanked.”30 Financial inclusion is important to define pre- Instead, the authors preferred the term “underbanked” cisely – and accurately – for the effective monitoring and to reflect the range of consumer engagement with the implementation of the aforementioned economic poli- “mainstream financial system.”31 They advocated – as we cies. [...] For instance, the The second and interrelated problem of imput- variance in definitions of financial inclusion hampers ing this definition to financial inclusion is the “formali- our ability to compare such studies against one anoth- ty” benchmark, which renders the definition both over- er,21 which in turn may limit the efficacy of national eco- and under-inclusive.