Could Financial Inclusion Decrease Bank’s Risk? New Evidence from Palestine

The aim to this study is to examine the relationship between enhancing financial inclusion on bank’s risk. The study uses data from banking sector working in Palestine from 2006 to 2016, includes loans to SMEs, online banking and banking penetration as financial inclusion proxies. The results indicates that enhancing financial inclusion could reduce bank’s risk in Palestine. Further research in the relationship between financial inclusion and bank’s performance and risk in other region and countries will presents more evidence in this relationship.