Commercial bank branches accessibility ease

Commercial bank branches are retail locations of resident commercial banks and other resident banks that function as commercial bank that provides financial services to customers and are physically separated from the main office but not organised as a legally separated subsidiaries.

Access to finance can expand opportunities for all with the higher levels of access and use of banking services associated with lower financing obstacles for people and businesses. A stable financial system that promotes efficient savings and investment is also crucial for a thriving democracy and market economy.

There are several aspects of access to financial services: Availability, cost, and quality of services.

The development and growth of credit markets depend on the access to timely, reliable, and accurate data on borrowers’ credit experiences.

Access to credit can be improved by making it is to create and enforce collateral agreements and by increasing information about the potential borrowers’ credit worthiness. Lenders look at the borrower’s credit history and collateral. Where credit registries and effective collateral law are absent, as in many developing countries, banks make fewer loans. Indicators that cover getting credit include the strength of legal rights index and the depth of the credit information index.

In a recent survey by the World Bank group it was found that the number of commercial bank branches per 100000 adult citizens is highest in San Marino i.e 211.8 whereas the same in India is 12.2. The commercial bank branches survey concludes that the number of commercial banks per 100000 adult citizens has gone up in India from 9 in 2004 to 12.2 in 2013. Whereas the range for San Marino stands within 195 to 211.8. India comparatively has shown a better growth rate of about 30% whereas it is 8.61% for San Marino.

Assumption:

The survey is based on the ratio of the number of branches and ATMs assuming a uniform distribution of bank outlets within the country’s area and across it’s population, while in most countries bank branches and ATMs are concentrated in urban centers of the country and are accessible only to some individuals. However the commercial bank branch reach is weak in rural areas.

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