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Factors influencing the regional location of banking infrastructure

Listed author(s):
  • Sara G. Castellanos


    (Investigadora, Dirección de Sistemas Operativos y de Pagos, Banco de México. México, D.F.)

  • Valeria C. Castellanos


    (Analista de sistemas de pagos, Dirección de Sistemas Operativos y de Pagos, Banco de México. México, D.F.)

  • B. Nelly Flores


    (Analista de sistemas de pagos, Dirección de Sistemas Operativos y de Pagos, Banco de México. México, D.F.)

We describe the recent trends that characterize the location of bank branches, automated teller machines (ATM) and point of sales terminals (POS) in Mexico, and evaluate whether bank infrastructure has expanded to previously uncovered regions. Further, we analyze the relationship between infrastructure location and several economic and population characteristics of states and municipalities. Coverage is better in regions that are more populated and have higher levels of income, education and formal economic activity, especially among larger banks. We also find an inverse relationship between location of branches and location of pos, and the transportation cost to the closest municipality with a branch.

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Article provided by in its journal Economia Mexicana NUEVA EPOCA.

Volume (Year): XVIII (2009)
Issue (Month): 2 (July-December)
Pages: 283-330

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Handle: RePEc:emc:ecomex:v:18:y:2009:i:2:p:283-330
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