Unbanked liquidity

Uninvested cash

Background

The issue of unbanked liquidity emerged as a global concern in the late 20th century, when researchers and policymakers observed vast sums circulating outside formal financial systems, particularly in developing economies. Its significance grew with the rise of microfinance and digital payment platforms, which highlighted both the scale and persistence of informal cash flows. International organizations began systematically tracking unbanked liquidity, recognizing its implications for economic stability, financial inclusion, and regulatory oversight worldwide.