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In this paper we study how competition and financial soundness affect financial inclusion in Sub-Saharan Africa (SSA). We use detailed individual-level survey data, combined with key country-level indicators of bank competition and financial soundness, to study the effect on the adoption of several financial products (bank accounts, credit and debit cards, and bank loans). We find that more competition tends to increase the probability of access to these financial products. On the contrary, we do not find strong evidence of the effect of bank-balance sheet variables (i.e. capital adequacy or liquidity) on borrowing by individuals. Our results may help policy makers design regulations that could improve financial inclusion, which could potentially impact economic growth and long-term economic development.

Income distribution. --- Distribution of income --- Income inequality --- Inequality of income --- Distribution (Economic theory) --- Disposable income --- Accounting --- Banks and Banking --- Finance: General --- Money and Monetary Policy --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Economic Development: Financial Markets --- Saving and Capital Investment --- Corporate Finance and Governance --- Market Structure, Firm Strategy, and Market Performance: General --- General Financial Markets: General (includes Measurement and Data) --- Financial Markets and the Macroeconomy --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Public Administration --- Public Sector Accounting and Audits --- Financial Institutions and Services: Government Policy and Regulation --- Finance --- Banking --- Monetary economics --- Public finance accounting --- Financial services law & regulation --- Competition --- Financial inclusion --- Credit --- Fiscal accounting and reporting --- Financial markets --- Money --- Public financial management (PFM) --- Capital adequacy requirements --- Financial regulation and supervision --- Financial services industry --- Banks and banking --- Finance, Public --- Asset requirements --- South Africa