포용적 금융과 최고금리 규제의 역설

Abstract

This study aims to analyze the impacts of strengthening the interest rate regulation on the small loan market in Korea and providing policy implications for invigorating and developing this market. Although setting a lower interest rate ceiling is intended for improving financial inclusion by lightening interest burdens of poor and vulnerable borrowers, it will probably bring about a worse situation that many of them cannot have the opportunity to borrow in the market, which paradoxically raises another type of financial exclusion. Therefore, a market-based solution that induces market participants to act in a desirable way is recommended rather than controlling the market directly. In this case, the government can help the lenders expand the market supply. The consequence is that the rate goes down while the trading volume increases, leading to the same goal of improving financial inclusion.