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Banking the unbanked: Evidence from the Spanish Banking Expansion Plan

Author

Listed:
  • Pere Arqué-castells

    () (Northwestern University (Searle Center on Law, Regulation and Economic Growth) & Barcelona Institute of Economics (IEB))

  • Elisabet Viladecans-Marsal

    () (Universitat de Barcelona & IEB)

Abstract

What are the benefits of lifting structural impediments to banking the unbanked? We address this question by studying the Spanish Banking Expansion Plan 1964-1974, a program aimed at extending banking services into unbanked municipalities after decades of banking status quo. We exploit the quasi-experimental nature of the program to identify its effects. Selected municipalities experienced a 9% increase in the number of workers per inhabitant. This effect was driven by the lending channel, primarily through the provision of liquidity and working capital, though not through the savings channel.

Suggested Citation

  • Pere Arqué-castells & Elisabet Viladecans-Marsal, 2016. "Banking the unbanked: Evidence from the Spanish Banking Expansion Plan," Working Papers 2016/24, Institut d'Economia de Barcelona (IEB).
  • Handle: RePEc:ieb:wpaper:doc2016-24
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    References listed on IDEAS

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    More about this item

    Keywords

    Banks; entrepreneurship; economic development;

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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