1 / 25

World Bank/Brookings Institution Global Conference World Bank Headquarters, Washington, DC May 30-31, 2006

nolen
Download Presentation

World Bank/Brookings Institution Global Conference World Bank Headquarters, Washington, DC May 30-31, 2006

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Indicators of Access to FinanceThrough Household Level SurveysConcepts and Measures for Six CountriesPresented by: Anjali Kumar, World BankBased on the collaboration of a Joint Working Group of the World Bank/DFID/Finmark TrustPrepared by: Anne-Marie Chidzero, FinMark Trust, Karen Ellis, DFID, & Anjali Kumar, World Bank with contributions from Mukta Joshi and Adam Parsons World Bank/Brookings Institution Global Conference World Bank Headquarters, Washington, DC May 30-31, 2006

  2. Individual and Household Consumers: present focus • ‘Specialized’ surveys of financial access: • Brazil, India, Colombia, Mexico, and new surveys in Nepal, Pakistan, Jordan and proposed for West Africa (World Bank) • South Africa, Botswana, Lesotho, Swaziland, Namibia, Zambia, Uganda, and proposed for Ghana, Tanzania (Finscope) • Compatibility Desirable with Broad Based Income and Expenditure Surveys: • LSMS, US, UK, many other developed countries

  3. What should be Measured? Dimensions of Access • Institutional Dimension - Across providers; e.g.: • Formal /Informal • Public / Private • Domestic / Foreign • Functional Dimension – Across services: • Transactions: check cashing to cross border remittances • Savings: from safekeeping to investment • Loans and credits: Infrequent to readily available • (Insurance / risk transformation) • Product Dimension / Across devices / interfaces: • Types of bank accounts, types of loans, credit cards, etc

  4. Institutional Core Indicators% Adult Population with access to: • A1: Banks and Bank like providers: • Broad-spectrum intermediaries (including some credit unions, niche banks) Criteria: deposit taking, access to national payments network, supervision and oversight, standard terms • A2: Other formal financial institutions: • More specialized, e.g. insurance, money transfer agents, finance/ credit companies Also regulated, vary by country and by service, tradeoff of comparability / comprehensiveness • A3: Informal financial service providers: • No financial regulation, but organized ROSCAs, tontines, moneylenders, pawn shops, ususus, stokvels etc.

  5. Financially Served Formally Included Informally Served (only) Financially Excluded Formal other (only) Bank Country X 0% 20% 40% 60% 80% 100% Bank Formal other Informal Excluded The Access Strand:Formal to Informal Institutions

  6. Functional Core Indicators % Adult Population who: • A4 = Payments: • Receive money regularly through formal financial instruments Income, remittances • A5 = Savings: • Keep money in formal financial instruments which allow them to safeguard and accumulate money Transactions accounts, savings accounts, time deposits / CDs, bonds, stocks, funds, voluntary pension plans, etc. • A6 = Loans and Credits: • Have obtained / have outstanding a loan or credit facility from a formal financial institution now or over the past 12 months.

  7. Sub Indicators: Poverty and Financial Access: • S1 = % Adults who are Formally Served in the Bottom Quintile Household Financial Access: • S2 = Individuals vs Households: % Adults formally served either directly or indirectly through another household member

  8. A1: The Banked Percentage of total adult population with a bank account § Each Individual is randomly selected from every household

  9. A2: Headline Indicator – The Formally Included Percentage of total adult population which uses the services of any formal financial institution ± Formal access high due to large number of people of accessing lottery shops

  10. A3: The Financially Served Percentage of total adult population which uses any formal and/or informal financial institution

  11. A4: Payments Percentage of adults receiving money regularly through formal financial institutions

  12. A5: Savings The percentage of adults who keep money in formal financial instruments which allow them to safeguard and accumulate money

  13. A6: Loans and Credit Percentage of persons who have obtained/have outstanding a loan or credit facility from a formal financial institution

  14. S1: The Poverty Dimension – The Formally Served in the Bottom Quintile Percentage of total adult population in the bottom income quintile which uses the services of any formal financial institutions

  15. S2: Individuals vs. Households – Direct and Indirect Access Percentage of total adult population formally served either directly or indirectly through another household member

  16. Comparison of the Core Access to Finance Indicators across Countries∫ ∫Data in percentages ± includes AFORES Quintile calculation based on * income, ‡ on bedrooms per person, § on income, ﾈ on rent

  17. A3- Financially Served – 54% A2 - Formally Included – 49% A1- Banked Financially Excluded Formal Other Informal Only Bank Financial Access Strand: Botswana 2004

  18. A3- Financially Served – 83.8% A2 - Formally Included – 79.3% Financially Excluded A1- Banked Formal Other Informal Only Bank Financial Access Strand: Brazil 2002

  19. A3- Financially Served – 50.6% A2 - Formally Included – 48.1% A1- Banked Financially Excluded Formal Other Informal Only Bank Financial Access Strand: Colombia 2002

  20. A3- Financially Served – 78.6% A2 - Formally Included – 52.0% Financially Excluded A1- Banked Bank Formal Other Informal Only Financial Access Strand: Mexico 2002

  21. A3- Financially Served - 55.8% A2 - Formally Included – 53.9% A1- Banked Financially Excluded Formal Other Informal Only Bank Financial Access Strand: Namibia 2004

  22. A3- Financially Served - 63% A2 - Formally Included – 55% A1- Banked Financially Excluded Formal Other Informal Only Bank Financial Access Strand: South Africa 2005

  23. The Formally Served – S1: Total population vs Bottom quintile

  24. The Formally Served – S2: Direct and Indirect Access

  25. The International CommunityInformation, Involvement, Support • From the next small steps.. • Incorporation of access indicators in multiple forms of investigations, with different donor / national partners • Undertaking a set of follow up surveys across a range of countries • The Vision: Mapping Access in the developing world • To the final major goals • Incorporating Access indicators into stronger policies for financial inclusion • Achieving growth and poverty reduction through financial deepening

More Related