Skip to Main Navigation

Banking services for everyone Barriers to bank access and use around the world (English)

Using information from 193 banks in 58 countries, the authors develop and analyze indicators of physical access, affordability, and eligibility barriers to deposit, loan, and payment services. They find substantial cross-country variation in barriers to banking and show that in many countries these barriers can potentially exclude a significant share of the population from using banking services. Correlations with bank- and country-level variables show that bank size and the availability of physical infrastructure are the most robust predictors of barriers. Further, the authors find evidence that in more competitive, open, and transparent economies, and in countries with better contractual and informational frameworks, banks impose lower barriers. Finally, though foreign banks seem to charge higher fees than other banks, in foreign dominated banking systems fees are lower and it is easier to open bank accounts and to apply for loans. On the other hand, in systems that are predominantly government-owned, customers pay lower fees but also face greater restrictions in terms of where to apply for loans and how long it takes to have applications processed. These findings have important implications for policy reforms to broaden access.

Details

  • Author

    Beck,Thorsten, Demirguc-Kunt,Asli, Martinez Peria,Maria Soledad

  • Document Date

    2006/12/01

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS4079

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2010/07/01

  • Disclosure Status

    Disclosed

  • Doc Name

    Banking services for everyone ? Barriers to bank access and use around the world

  • Keywords

    barrier to banking;loan application;access to financial service;savings account;access to banking service;Cost of Doing Business;universal service agency;fees for checking account;cost of contract enforcement;minimum balance;consumer loan;minimum loan;cost of transfer;implications for policy;banking sector outreach;SME loan;fees and charge;income distribution datum;persistent income inequality;amount of fund;withdrawal of fund;speed of transfer;types of service;financial intermediary development;number of banks;private sector credit;data on income;country case study;electric power transmission;allocation of credit;share of income;international wire transfer;lack of interest;private financial institution;moral hazard problem;credit information system;banks' balance sheet;degree of competition;access to information;financial sector development;access to financing;per capita income;cost of finance;point of service;higher fee;banking system;large bank;physical infrastructure;deposit service;cross-country variation;foreign bank;financing obstacle;documentation requirement;market structure;transaction cost;financial exclusion;credit service;loan type;application process;efficient system;media freedom;empirical literature;high financing;ownership structure;high correlation;Payments for Services;household income;substantial variation;transaction account;checking fee;firm growth;individual bank;descriptive statistic;telecom service;eligibility criterion;minimum deposit;deposit fee;bank size;eligibility barriers;scale economy;financial outreach;eligibility requirement;household size;branch penetration;loan decision;information asymmetry;financial market;market friction;regulatory requirement;composite index;income data;power outage;multiple channels;phone network;regression analysis;empirical work;competitive economy;loan account;insurance product;financial intermediaries;domestic bank;asymmetric information;bank client;distribution loss;market power;lending service;positive relationship;international transfer;Standard Product;atm penetration;cross-country data;firm level;quantitative measure;smaller enterprise;external financing;corporate sector;bank entry;Financial Access;access barrier;regulatory indicator;household level;cross-country differences;bank ownership;opportunity cost;adverse selection;mortgage loan;smaller number;empirical evidence;information environment;loan applicant;recommendation letter;loan product;bank regulator;competitive environment;productivity growth;microfinance institution;finance company;account balance;agency problem;informal sector;pricing strategy;bank asset;median country;financing pattern;survey questions;financial product;research department;rural area;bank charge;research assistance;financing constraint;transferring fund;facilitating payment;country-level indicator;prospective depositor;dollar term;financial practice;entry rate;positive correlation;local bank;loan access;aggregate measure;savings deposit;formal banking;total sample;poverty alleviation;poverty trap;loan service;broad access;theoretical model;bank outlet;increase poverty;competitive framework;business environment;estimation technique;large transaction;business strategy;private clients;retail business;fixed transaction;financial system;cost structure;explanatory variable;regression model;foreign ownership;natural order;skewed distribution;asset ratio;small bank;telephone line;firm survey;electricity network;financial depth;input cost;average household;high ratio;loan process;important policy;state bank;foreign entry;processing time;income statement;disclosure standard;political freedom;

Downloads

COMPLETE REPORT

Official version of document (may contain signatures, etc)

  • Official PDF
  • TXT*
  • Total Downloads** :
  • Download Stats
  • *The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.

Citation

Beck,Thorsten Demirguc-Kunt,Asli Martinez Peria,Maria Soledad

Banking services for everyone Barriers to bank access and use around the world (English). Policy, Research working paper ; no. WPS 4079 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/516081468141269450/Banking-services-for-everyone-Barriers-to-bank-access-and-use-around-the-world