Which Households Use Banks? Evidence from the Transition Economies (Replaced by EBC DP 2011-024)

T.H.L. Beck, M. Brown

Research output: Working paperDiscussion paperOther research output

Abstract

This paper uses survey data for 29,000 households from 29 transition economies to explore how the use of banking services is related to household characteristics, bank ownership structure and the development of the financial infrastructure. At the household level we find that the holding of a bank account or bank card increases with income, wealth and education in most countries and also find evidence for an urban-rural gap, as well as for a role of religion and social integration. Our results show that foreign bank ownership is associated with more bank accounts among high-wealth, high-income, and educated households. State ownership, on the other hand, does not induce financial inclusion of rural and poorer households. We find that higher deposit insurance coverage, better payment systems and creditor protection encourage the holding of bank accounts in particular by high-income and high-wealth households. All in all, our findings shed doubt on the ability of policy levers to broaden the financial system to disadvantaged groups.
Original languageEnglish
Place of PublicationTilburg
PublisherEBC
Number of pages37
Volume2010-25
Publication statusPublished - 2010

Publication series

NameEBC Discussion Paper
Volume2010-25

Fingerprint

Transition economies
Household
Income
Bank ownership
Survey data
Household wealth
State ownership
Wealth and income
Banking services
Wealth
Education
Ownership structure
Financial system
Foreign banks
Deposit insurance
Rural-urban
Social integration
Payment system
Disadvantaged groups
Financial inclusion

Keywords

  • Access to finance
  • Bank-ownership
  • Deposit insurance
  • Payment system
  • Creditor protection

Cite this

Beck, T. H. L., & Brown, M. (2010). Which Households Use Banks? Evidence from the Transition Economies (Replaced by EBC DP 2011-024). (EBC Discussion Paper; Vol. 2010-25). Tilburg: EBC.
Beck, T.H.L. ; Brown, M. / Which Households Use Banks? Evidence from the Transition Economies (Replaced by EBC DP 2011-024). Tilburg : EBC, 2010. (EBC Discussion Paper).
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Beck, THL & Brown, M 2010 'Which Households Use Banks? Evidence from the Transition Economies (Replaced by EBC DP 2011-024)' EBC Discussion Paper, vol. 2010-25, EBC, Tilburg.

Which Households Use Banks? Evidence from the Transition Economies (Replaced by EBC DP 2011-024). / Beck, T.H.L.; Brown, M.

Tilburg : EBC, 2010. (EBC Discussion Paper; Vol. 2010-25).

Research output: Working paperDiscussion paperOther research output

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T1 - Which Households Use Banks? Evidence from the Transition Economies (Replaced by EBC DP 2011-024)

AU - Beck, T.H.L.

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PY - 2010

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N2 - This paper uses survey data for 29,000 households from 29 transition economies to explore how the use of banking services is related to household characteristics, bank ownership structure and the development of the financial infrastructure. At the household level we find that the holding of a bank account or bank card increases with income, wealth and education in most countries and also find evidence for an urban-rural gap, as well as for a role of religion and social integration. Our results show that foreign bank ownership is associated with more bank accounts among high-wealth, high-income, and educated households. State ownership, on the other hand, does not induce financial inclusion of rural and poorer households. We find that higher deposit insurance coverage, better payment systems and creditor protection encourage the holding of bank accounts in particular by high-income and high-wealth households. All in all, our findings shed doubt on the ability of policy levers to broaden the financial system to disadvantaged groups.

AB - This paper uses survey data for 29,000 households from 29 transition economies to explore how the use of banking services is related to household characteristics, bank ownership structure and the development of the financial infrastructure. At the household level we find that the holding of a bank account or bank card increases with income, wealth and education in most countries and also find evidence for an urban-rural gap, as well as for a role of religion and social integration. Our results show that foreign bank ownership is associated with more bank accounts among high-wealth, high-income, and educated households. State ownership, on the other hand, does not induce financial inclusion of rural and poorer households. We find that higher deposit insurance coverage, better payment systems and creditor protection encourage the holding of bank accounts in particular by high-income and high-wealth households. All in all, our findings shed doubt on the ability of policy levers to broaden the financial system to disadvantaged groups.

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KW - Bank-ownership

KW - Deposit insurance

KW - Payment system

KW - Creditor protection

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VL - 2010-25

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BT - Which Households Use Banks? Evidence from the Transition Economies (Replaced by EBC DP 2011-024)

PB - EBC

CY - Tilburg

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Beck THL, Brown M. Which Households Use Banks? Evidence from the Transition Economies (Replaced by EBC DP 2011-024). Tilburg: EBC. 2010. (EBC Discussion Paper).