Work

Microfinance Banks and Financial Inclusion

Year: 2015

Type: article

Abstract: We examine how the geographical proximity to a microfinance bank affects financial inclusion. We study the expansion of the branch network of ProCredit banks in South-East Europe between 2006 and 2010. We report three main findings: First, ProCredit is more likely to open a new branch in areas with a large share of low-income households. Second, in locations where ProCredit opens a new branch the share of banked households increases more than in locations where it does not open a new branch. Third, this increase is particularly strong among low-income households, older households, and households which rely on transfer income.

Source: European Finance Review

DOI: 10.1093/rof/rfv026

Authors: Martin Brown, Benjamin Guin, Karolin Kirschenmann

Institution: University of St.Gallen

Language: English

Topic: Microfinance and Financial Inclusion

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, Decent work and economic growth, No poverty

Open Access status: bronze

Funders: European Bank for Reconstruction and Development, KfW Entwicklungsbank