Use of Banking Services in Emerging Markets - Household-Level Evidence

This study, employing a logistic regression model seeks to identify the important factors that influence household’s access to banking services. The result shows that about 31.7% households have bank account while the remaining 68.3% households have no such account. The result found that with the increase in age of household’s head access to banking services increased gradually. As observed, female headed household have greater access to banking services as compared to male headed household. More so, formerly/ever married headed households have less access to banking services by comparison with never married headed households. The result also shows that access to banking services gradually increased with increasing education level of household’s head. It is found that poor households have very less access to banking services as compared to non-poor households. Increased land ownership of household allowed gradual increase in the access to banking services. The result also mentions that nonowner homestead households have less access to banking services as compared to own homestead households. According to the logistics regression analysis, comparing with the rural households it has been found that the urban households have more access to banking facilities.Bangladesh J. Sci. Res. 30(1&2): 81-89, December-2017

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Social trust and use of banking services across households in 28 transitional countries

International Journal of Social Economics ◽

10.1108/ijse-10-2014-0204 ◽

2016 ◽

Vol 43 (4) ◽

pp. 431-443 ◽

Cited By ~ 2

Author(s):

Elvin Afandi ◽

Nazim Habibov

Keyword(s):

Social Trust ◽

Large Set ◽

Banking Services ◽

Content Type ◽

Household Level ◽

Legal Enforcement ◽

Transitional Countries ◽

Inflation Rates ◽

Bank Ownership ◽

Binary Probit

Purpose – The purpose of this paper is to use survey data from a sample of 29,000 households from 28 transitional countries and Turkey to address two main questions: first, is there any effect of social trust on the use of banking services; and second, what are the household-level and country-specific determinants of using banking services in transitional countries. Design/methodology/approach – The authors use binary probit models, instrumental variables methods and various econometric specifications to test the hypothesis. Findings – The authors found that the higher level of trust in people predicts a greater level in use of banking services by households regardless of the model specifications and econometric adjustments employed. This association appears to be more prominent among less educated respondents and in countries with low levels of legal enforcement. The results also suggest that location, income and wealth of households, along with country income level, legal enforcement and inflation rates strongly affect the decisions made by households regarding their use of banking services. In contrast, the authors found either a very small or non-significant impact with regard to bank ownership structure on the use of banking services across households. Originality/value – To the best of the knowledge this is the first study which specifically focusses on social trust and the usage of formal banking services across a large set of transitional countries.

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