Analysis of the Use of Financial Services by Companies in Mexico: What does the 2009 Economic Census tell us?
AbstractIn this article, we present a descriptive analysis of the results of the 2009 Economic Census regarding the use of bank credit and accounts by productive entities (companies). To this end, INEGI was requested to prepare a set of statistics regarding various company characteristics that are relevant to the decisions made by institutions offering banking services. Upon request, this information was grouped according to the different business segments we defined based on their access to credit and/or use of banking services, in order to determine the size of the market for financial services like credit or bank accounts (checking, savings or investment). Also upon request, the information was provided in segments according to the stratum of employed personnel to establish 4 company sizes: Micro (0 to 10 employees), Small (11 to 50 employees), Medium (51 to 250 employees) and Large (251 or more employees). The information above enabled the size of the market for credit and attracting customers to be established in 2008 Mexico and to identify the materiality of the phenomena of \"voluntary rationing\" and \"involuntary rationing\" (Stiglitz and Weiss, 1981). As a result of involuntary rationing, in that year, a potential credit market of approximately 1.5 million companies and a potential market for bank accounts of 1.1 million were established. Involuntary rationing is a phenomenon that mostly impacts smaller companies and is more pronounced in the context of the use of bank accounts than in that of credit.
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Bibliographic InfoPaper provided by BBVA Bank, Economic Research Department in its series Working Papers with number 1216.
Length: 50 pages
Date of creation: Jul 2012
Date of revision:
Mexico; bank credit to firms; use of bank accounts among firms; micro small and medium enterprises; voluntary and involuntary rationing in financial markets;
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bruhn, Miriam, 2012.
"A tale of two species : revisiting the effect of registration reform on informal business owners in Mexico,"
Policy Research Working Paper Series
5971, The World Bank.
- Bruhn, Miriam, 2013. "A tale of two species: Revisiting the effect of registration reform on informal business owners in Mexico," Journal of Development Economics, Elsevier, vol. 103(C), pages 275-283.
- Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
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