AN OVERVIEW OF FINANCIAL INCLUSION, DEPOSIT INSURANCE AND FINANCIAL STABILITY

Financial inclusion, which defines peoples' accessibility to financial services, has brought numerous benefits for individuals as well as the stability of financial development. Deposit insurance, as one of the pillars for safety net, helps to alleviate risk among banks and enhance trust between depositors during economic turmoil, also contribute to the financial stability. This paper tries to find the mutual interaction between deposit insurance and financial inclusion on financial depth and banking stability, with the conclusion that deposit insurance stabilizes banking crisis and promotes financial depth, contributes a positive effect to a broaden financial inclusion. This paper also highlights some barriers for achieving higher level of financial inclusion, concluded with future developments that can be made from the perspective of deposit insurance.