Access to financial services in Argentina: a national survey (original) (raw)
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Access to and use of financial services in Latin America.pdf
This paper aims to carry out a theoretical and methodological analysis on the access to and use of financial services, recognizing that it is a vital issue especially for the productive sector of a country. It begins by reviewing the concept of banking, and then through a descriptive analysis to present the most relevant aspects of access to financial services in Brazil, Colombia, Peru and finally Ecuador. Based on these results, reference points are made for the evaluation of Ecuador, where there is a rapid expansion of the banking sector to previously unknown areas.
Financial inclusion and its determinants: the case of Argentina
2015
This paper analyses the three dimensions determining financial inclusion in the case of Argentina, from a micro-economic perspective. On the supply side, formal financial services are accessed through traditional channels: branches and ATMs, with an as-yet incipient regulation for financial inclusion, unlike the situation in neighbouring countries. In terms of use, a person’s level of education, income and age are all important variables which determine whether they have financial products such as accounts, credit and debit cards, formal credit and electronic payments. Finally, the factors affecting the perception of different barriers of involuntary exclusion are: income and age.
The Basic Analytics of Access to Financial Services
Financial Markets, Institutions & Instruments, 2007
Access to financial services, or rather the lack thereof, is often indiscriminately decried as problem in many developing countries. This paper argues that the "problem of access" should rather be analyzed by identifying different demand and supply constraints. We use the concept of an access possibilities frontier, drawn for a given set of state variables, to distinguish between cases where a financial system settles below the constrained optimum, cases where this constrained optimum is too low, and-in credit services-cases where the observed outcome is excessively high. We distinguish between payment and savings services and fixed intermediation costs, on the one hand, and lending services and different sources of credit risk, on the other hand. We include both supply and demand side frictions that can lead to lower access. The analysis helps identify bankable and banked population, the binding constraint to close the gap between the two, and policies to prudently expand the bankable population. This new conceptual framework can inform the debate on adequate policies to expand access to financial services and can serve as basis for an informed measurement of access.
Journal of Perspectives on Financing and Regional Development, 2019
The main objective of this paper is to analyze the behavior and dynamics of the banking sector in underdeveloped economies in times of financialization, using the cases of Argentina and Mexico. We argue that financialization has increased banking concentration and the participation of financial institutions too big to fail in the banking sector of underdeveloped countries. We start by analyzing some general statistics of the financial complex at the aggregate level and, later, we present a more concrete study on the behavior of the banking system in the two countries. We also develop a comparative analysis of access to financial services based on data from the World Bank. We found that the banking predominance has not been reflected in an increase in financial inclusion, but has exacerbated social inequalities, reconfiguring what is understood as underdevelopment in the 21st century. Given these adversities, we recommend that banks be more flexible when granting a loan to increase the financial inclusion of individuals.
Within the context of an exploration of the recent financial geographies literature, which laments the lack of attention paid to the dynamics and impacts of financial globalisation in Latin America and the global South, this paper examines the links between exclusion from formal financial services provision for low-income sectors across Latin America and the unstable nature of regional financial services architecture and economies. The paper examines a range of issues, including control of the financial services infrastructure by foreign corporations, the role of regional elites and (as importantly) the decision making processes of the poor themselves. This contextual analysis is employed to investigate the premise that the future sustainability of Latin American economies and societies more than ever depends on what efforts are made to develop the extension of financial services provision for the excluded and in so doing broaden the complexity, increase the heterogeneity and enhance the stability of the region’s economies. To this end, the paper outlines the technical and non-technical barriers to banking the unbanked in the region within the context of an engagement with the dynamics of the radical changes in the international financial services sector that have impacted upon the region over recent years.
Access to Financial Services: Measurement, Impact, and Policies Downloaded from
In many developing countries less than half the population has access to formal financial services, and in most of Africa less than one in five households has access. Lack of access to finance is often the critical mechanism for generating persistent income inequality, as well as slower economic growth. Hence expanding access remains an important challenge across the world, leaving much for governments to do. However, not all government actions are equally effective and some policies can even be counterproductive. This paper sets out principles for effective government policy on broadening access, drawing on the available evidence and illustrating with examples. The paper concludes with directions for future research. JEL Codes: D31, G20, G21, O12, O16 Financial markets and institutions exist to overcome the effects of information asymmetries and transaction costs that prevent the direct pooling and investment of society's savings. They mobilize savings and provide payments services that facilitate the exchange of goods and services. In addition, they produce and process information about investors and investment projects to guide the allocation of funds, monitor and govern investments, and help diversify, transform, and manage risk. 1 When they work well they provide opportunities for all market participants to take advantage of the best investments by channeling funds to their most productive uses, hence boosting growth, improving income distribution , and reducing poverty. When they do not work well growth opportunities are missed, inequalities persist, and in extreme cases, there can be costly crises. Until recently econometric research on the performance of formal financial systems around the world has focused mainly on their depth, efficiency, and stability. Crosscountry regressions have shown financial depth to be not only pro-growth but also pro-poor: economies with better developed financial systems experience faster drops in income inequality and faster reductions in poverty
The Provision of Banking Services in Latin America: Obstacles and Recommendations
2007
The depth of and access to financial services provided by banks throughout Latin America are extremely low in spite of its recognized importance for economic activity, employment and poverty alleviation. Low financial depth and access hurts the poor the most and is due to a variety of obstacles that are presented in this paper in four categories, along with recommendations