Les Cahiers de Recherche - HEC Paris
Unbanked Households: Evidence of Supply-Side Factors
() and Claire Celerier
Abstract: This paper provides evidence that supply-side factors
significantly drive the high share of unbanked households. Using interstate
branching deregulation in the U.S. after 1994 as an exogenous shock, the
authors show that an increase in bank competition is associated with a
large drop in the share of unbanked households. The authors find that the
effect is even stronger for populations that are more likely to be rationed
by banks, such as black households living in "high racial bias'' states.
The improved access to bank accounts leads to higher savings rates but does
not translate to higher levels of indebtedness.
Keywords: Banks; Regulation; Imperfect Competition; Household Finance; Discrimination; (follow links to similar papers)
JEL-Codes: D14; D43; G21; G28; J15; (follow links to similar papers)
53 pages, February 7, 2014
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