Use of Banking Services in Emerging Markets -Household-Level Evidence (Replaces EBC DP 2010-025)

T.H.L. Beck, M. Brown

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Abstract

This paper uses survey data for 60,000 households from 29 transition economies in 2006 and 2010 to explore how the use of banking services is related to household characteristics, as well as to bank ownership, deposit insurance and creditor protection. At the household level we find that the holding of a bank account, a bank card, or a mortgage increases with income and education in most countries and find evidence for an urban-rural gap. The use of banking services is also related to the religion and social integration of a household as well as the gender of the household head. Using the within-country variation between 2006 and 2010, we find that the privatization of state-owned banks and an increase in market share of foreign banks are associated with a stronger use of banking services. Foreign bank ownership is also associated with a higher use of bank services among highincome households and households with formal employment. State ownership, by contrast is hardly associated with more outreach to poorer households. More generous deposit insurance and stronger creditor rights also foster the use of banking services among the urban, rich, better educated and formally employed.
Original languageEnglish
Place of PublicationTilburg
PublisherEBC
Volume2011-024
Publication statusPublished - 2011

Publication series

NameEBC Discussion Paper
Volume2011-024

Fingerprint

Emerging markets
Banking services
Household
Foreign banks
Deposit insurance
Bank ownership
Survey data
State ownership
Outreach
Education
Transition economies
Income
Rural-urban
Social integration
State-owned banks
Market share
Mortgages
Privatization
Creditor rights

Keywords

  • Access to finance
  • Household finance
  • Bank-ownership
  • Deposit insurance
  • Creditor protection

Cite this

Beck, T. H. L., & Brown, M. (2011). Use of Banking Services in Emerging Markets -Household-Level Evidence (Replaces EBC DP 2010-025). (EBC Discussion Paper; Vol. 2011-024). Tilburg: EBC.
Beck, T.H.L. ; Brown, M. / Use of Banking Services in Emerging Markets -Household-Level Evidence (Replaces EBC DP 2010-025). Tilburg : EBC, 2011. (EBC Discussion Paper).
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Beck, THL & Brown, M 2011 'Use of Banking Services in Emerging Markets -Household-Level Evidence (Replaces EBC DP 2010-025)' EBC Discussion Paper, vol. 2011-024, EBC, Tilburg.

Use of Banking Services in Emerging Markets -Household-Level Evidence (Replaces EBC DP 2010-025). / Beck, T.H.L.; Brown, M.

Tilburg : EBC, 2011. (EBC Discussion Paper; Vol. 2011-024).

Research output: Working paperDiscussion paperOther research output

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N2 - This paper uses survey data for 60,000 households from 29 transition economies in 2006 and 2010 to explore how the use of banking services is related to household characteristics, as well as to bank ownership, deposit insurance and creditor protection. At the household level we find that the holding of a bank account, a bank card, or a mortgage increases with income and education in most countries and find evidence for an urban-rural gap. The use of banking services is also related to the religion and social integration of a household as well as the gender of the household head. Using the within-country variation between 2006 and 2010, we find that the privatization of state-owned banks and an increase in market share of foreign banks are associated with a stronger use of banking services. Foreign bank ownership is also associated with a higher use of bank services among highincome households and households with formal employment. State ownership, by contrast is hardly associated with more outreach to poorer households. More generous deposit insurance and stronger creditor rights also foster the use of banking services among the urban, rich, better educated and formally employed.

AB - This paper uses survey data for 60,000 households from 29 transition economies in 2006 and 2010 to explore how the use of banking services is related to household characteristics, as well as to bank ownership, deposit insurance and creditor protection. At the household level we find that the holding of a bank account, a bank card, or a mortgage increases with income and education in most countries and find evidence for an urban-rural gap. The use of banking services is also related to the religion and social integration of a household as well as the gender of the household head. Using the within-country variation between 2006 and 2010, we find that the privatization of state-owned banks and an increase in market share of foreign banks are associated with a stronger use of banking services. Foreign bank ownership is also associated with a higher use of bank services among highincome households and households with formal employment. State ownership, by contrast is hardly associated with more outreach to poorer households. More generous deposit insurance and stronger creditor rights also foster the use of banking services among the urban, rich, better educated and formally employed.

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KW - Household finance

KW - Bank-ownership

KW - Deposit insurance

KW - Creditor protection

M3 - Discussion paper

VL - 2011-024

T3 - EBC Discussion Paper

BT - Use of Banking Services in Emerging Markets -Household-Level Evidence (Replaces EBC DP 2010-025)

PB - EBC

CY - Tilburg

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Beck THL, Brown M. Use of Banking Services in Emerging Markets -Household-Level Evidence (Replaces EBC DP 2010-025). Tilburg: EBC. 2011. (EBC Discussion Paper).