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Martin Brown, Benjamin Guin, Karolin Kirschenmann, Microfinance Banks and Financial Inclusion , Review of Finance, Volume 20, Issue 3, May 2016, Pages 907–946, https://doi.org/10.1093/rof/rfv026
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Abstract
We examine how the geographical proximity to a microfinance bank affects financial inclusion. We study the expansion of the branch network of ProCredit banks in South-East Europe between 2006 and 2010. We report three main findings: First, ProCredit is more likely to open a new branch in areas with a large share of low-income households. Second, in locations where ProCredit opens a new branch the share of banked households increases more than in locations where it does not open a new branch. Third, this increase is particularly strong among low-income households, older households, and households which rely on transfer income.