Improving Access to Banking : Evidence from Kenya

Allen, Franklin ; Carletti, Elena ; Cull, Robert ; Qian, Jun ; Senbet, Lemma ; Valenzuela, Patricio

World Bank, Washington, DC

关键词: ACCESS TO BANK;    ACCESS TO BANK ACCOUNTS;    ACCESS TO BANKING;    ACCESS TO BANKING SERVICES;    ACCESS TO CREDIT;   

DOI  :  10.1596/1813-9450-6593
RP-ID  :  WPS6593

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Using household surveys and bankpenetration data at the district-level in 2006 and 2009,this paper examines the impact of Equity Bank -- a leadingprivate commercial bank focusing on microfinance -- onaccess to banking in Kenya. Unlike other commercial banks inKenya, Equity Bank pursues distinct branching strategiesthat target underserved areas and less-privilegedhouseholds. Equity Bank presence has a positive andsignificant impact on households' use of bank accountsand bank credit, especially for Kenyans with low income, nosalaried job, and less education and those who do not owntheir own home. The findings are robust to using thedistrict-level proportion of people speaking a minoritylanguage as an instrument for Equity Bank presence. Itappears that Equity Bank's business model -- providingfinancial services to population segments typically ignoredby traditional commercial banks and generating sustainableprofits in the process -- can be a solution to the financialaccess problem that has hindered the development ofinclusive financial sectors in many African countries.