Deposit insurance, remittances, and dollarization: Survey‐based evidence from a top remittance‐receiving country. (13th May 2019)

• Record Type: Journal Article
• Authors: Grigorian, David A.; Kryshko, Maxym
• Editors: Lartey, Emmanuel K. K.
• Is Part Of: Economic notes. Volume 48:Number 3(2019)
• Page Start: n/a
• Page End: n/a
• Publication Date: 2019-05-13
• Subjects: deposit insurance -- dollarization -- remittances -- Tajikistan; Economics -- Periodicals; 330.9
• DOI: 10.1111/ecno.12138
• Languages: English
• ISSNs: 0391-5026

Abstract

Abstract: The study uses a unique survey of remittance‐receiving individuals from Tajikistan to study the impact of policy awareness on consumer behavior. The results show that knowledge of deposit insurance encourages the use of formal channels for transmitting remittances and reduces dollarization. Given the size and importance of remittances in Tajikistan, improving financial literacy and better publicizing details of the social safety net may encourage a more frequent use of formal channels for transferring remittances and reduce reliance on foreign exchange for transaction purposes. This is likely to improve bank profitability, enhance financial stability, and improve access to finance.