Banking the Unbanked: Evidence from the Spanish Banking Expansion Plan

IEB Working Paper 2016/24

43 Pages Posted: 6 Oct 2016 Last revised: 11 Nov 2016

See all articles by Pere Arque-Castells

Pere Arque-Castells

University of Groningen (Innovation Management and Strategy)

Elisabet Viladecans-Marsal

University of Barcelona

Date Written: October 5, 2016

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.

Keywords: Banks, Entrepreneurship, Economic development

JEL Classification: O16, G21, O43, L26

Suggested Citation

Arqué Castells, Pere and Viladecans-Marsal, Elisabet, Banking the Unbanked: Evidence from the Spanish Banking Expansion Plan (October 5, 2016). IEB Working Paper 2016/24, Available at SSRN: https://ssrn.com/abstract=2848288 or http://dx.doi.org/10.2139/ssrn.2848288

Pere Arqué Castells

University of Groningen (Innovation Management and Strategy) ( email )

Nettelbosje 2
Innovation Management and Strategy
Groningen, 9747 AE
Netherlands

HOME PAGE: http://www.arque-castells.com

Elisabet Viladecans-Marsal (Contact Author)

University of Barcelona ( email )

Gran Via de les Corts Catalanes, 585
Barcelona, 08007
Spain

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