Financial Intermediation and Bank Branching in Brazil

Juliano Assunção’s multi-faceted research project investigates the microeconomic consequences of two aspects of the branch banking system in Brazil: government ownership and inflation. His research examines how inflation affects the bank business and, therefore, the bank branch locations. The study also looks at how bank ownership in Brazil affects the expansion of the financial system, especially with regard to branch locations. Finally, the study investigates the impact of financial access and competition on economic (poverty, income and entrepreneurship) and financial (deposits and credits) outcomes.

Research Questions: 
  • Are government banks different from private banks in terms of providing access to the financial system? How do government banks interact with private banks?
  • Does the change in the ownership of banks affect the outreach of the banking system? Are the poor areas more affected? What are the impacts on financial outcomes?
  • How does inflation affect bank branching? What is the profile of the most affected areas? Does the stabilization of the inflation change the business strategies of banks? Are these effects different for government-owned and privately owned banks?
  • What are the consequences of financial access and competition on economic and financial outcomes? Do they vary according to inflation and ownership?
Data Notes: 
  • Entry and exit of bank branches since early 1900s, with geo-location;
  • Entry and exit of PAB (banking services posts), with geo-location;
  • Entry and exit of banking correspondents, with geo-location;
    • Financial statements of banks (municipal-level) - 1991, 1994-2009 (monthly data):
    • Population (municipal-level) - 1920, 1940, 1950, 1960, 1970, 1980, 1991, 1996 and 2000;
    • Per capita income (municipal-level) - 1920, 1939, 1949, 1959, 1970, 1975, 1980, 1985,1996, 1999, 2000-2006
  • Demographic Censuses (microdata) - 1970, 1980, 1991 and 2000;
  • Household surveys (microdata) - almost every year from 1992 to 2008.

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Central Bank of Brazil