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Using information from 193 banks in 58 countries, the authors develop and analyze indicators of physical access, affordability, and eligibility barriers to deposit, loan, and payment services. They find substantial cross-country variation in barriers to banking and show that in many countries these barriers can potentially exclude a significant share of the population from using banking services. Correlations with bank- and country-level variables show that bank size and the availability of physical infrastructure are the most robust predictors of barriers. Further, the authors find evidence that in more competitive, open, and transparent economies, and in countries with better contractual and informational frameworks, banks impose lower barriers. Finally, though foreign banks seem to charge higher fees than other banks, in foreign dominated banking systems fees are lower and it is easier to open bank accounts and to apply for loans. On the other hand, in systems that are predominantly government-owned, customers pay lower fees but also face greater restrictions in terms of where to apply for loans and how long it takes to have applications processed. These findings have important implications for policy reforms to broaden access.

Bank --- Bank Accounts --- Banking Services --- Banks --- Banks and Banking Reform --- Checking Account --- Customers --- Debt Markets --- Demand --- Depos Deposits --- Emerging Markets --- Finance and Financial Sector Development --- Financial Institutions --- Financial Literacy --- Financial Services --- Financial Transaction --- Household Income --- Information --- Loan --- Loans --- Population --- Private Sector Development --- Research Assistance --- Transaction --- Transactions

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This paper studies the role of morality in the decision to repay debts. Using a field experiment with a large Islamic bank in Indonesia, the paper finds that moral appeals strongly increase credit card repayments. In this setting, all of the banks late-paying credit card customers receive a basic reminder to repay their debt one day after they miss the payment due date. In addition, two days before the end of a ten-day grace period, clients in a treatment group also receive a text message that cites an Islamic religious text and states that "non-repayment of debts by someone who is able to repay is an injustice." This message increases the share of customers meeting their minimum payments by nearly 20 percent. By contrast, sending either a simple reminder or an Islamic quote that is unrelated to debt repayment has no effect on the share of customers making the minimum payment. Clients also respond more strongly to this moral appeal than to substantial financial incentives: receiving the religious message increases repayments by more than offering a cash rebate equivalent to 50 percent of the minimum repayment. Finally, the paper finds that removing religious aspects from the quote does not change its effectiveness, suggesting that the moral appeal of the message does not necessarily rely on its religious connotation.

Access to credit --- Adverse selection --- Arrears --- Assets --- Bank indonesia --- Banking --- Bankruptcy and resolution of financial distress --- Banks and banking reform --- Borrowers --- Checking account --- Collect debts --- Collections --- Communications --- Consumer choice --- Consumer choices --- Credit card --- Credit card debt --- Credit control --- Credit market --- Current debt --- Customer service --- Customers --- Debt --- Debt forgiveness --- Debt markets --- Debt relief --- Debt repayment --- Debtor --- Debts --- Default --- Deposit --- E-Business --- Emerging markets --- Equity --- Equity fund --- Estate private sector development --- Ethical behavior --- Ethical global equity --- Ethical global equity fund --- Exchange --- Fair trade --- Finance and financial sector development --- Financial development --- Financial products --- Forgiveness --- Gambling --- Global equity --- Goods --- Grace period --- Grants --- Human capital --- Human rights --- Income --- Indebted --- Indebted poor countries --- Insurance --- Interest --- Interest rate --- Interest rates --- Interested party --- International bank --- Investment --- Investment management --- Investor --- Islamic bank --- Islamic law --- Late payment --- Law --- Liquidity --- Liquidity constraint --- Loan --- Loan repayment --- Moral hazard --- Moral suasion --- Mortgage --- New credit --- Outsourcing --- Outstanding debt --- Partner bank --- Payment --- Payments --- Peer pressure --- Penalties --- Penalty --- Political economy --- Portfolio --- Price --- Pricing --- Property --- Public debt --- Real estate --- Repayment --- Repayment behavior --- Repayment of debt --- Repayment of debts --- Repayment rate --- Repayment rates --- Responsible investment --- Restructuring --- Revenue --- Risk --- Saving --- Savings --- Savings account --- Savings accounts --- Services --- Share --- Shares --- Socially responsible investment --- Sovereign debt --- Stocks --- Student debt --- Student loans --- Trade --- Usury laws