# **Appendix 3: Correlations (* shows 5 percent significance)**

||Δ Accounts<br>per<br>1,000 adults<br>in commercial<br>banks (logs)|Δ Loans per<br>1,000 adults in<br>commercial<br>banks<br>(logs)|Δ Value of<br>deposits /GDP<br>(logs)|Δ Value of<br>loans/ GDP<br>(logs)|Δ Branches<br>per<br>100,000 adults<br>in commercial<br>banks<br>(logs)|Δ Branches<br>per<br>squared km in<br>commercial<br>banks<br>(logs)|
|---|---|---|---|---|---|---|
|Δ # commercial bank|1||||||
|deposits/1,000 Adults (log)<br>|||||||
|Δ # commercial bank loans/1,000<br>Adults (log)|0.2922*|1|||||
|Δ commercial bank deposit<br>volume/GDP (log)|0.1552|0.0887|1||||
|Δ commercial bank loan<br>volume/GDP (log)|0.102|0.0612|0.9733*|1|||
|Δ # commercial bank<br>branches/100,000 Adults (log)|0.056|-0.088|-0.0312|0.0228|1||
|Δ # commercial bank<br>branches/square km (log)|0.0501|-0.037|-0.03|0.0136|0.9883*|1|
|# commercial bank deposits in<br>2009/1,000 Adults (log)|-0.0729|-0.0278|0.0294|0.0816|-0.1765|-0.194|
|# commercial bank loans in<br>2009/1,000 Adults (log)|-0.2166|-0.0261|-0.0477|0.0419|-0.2053|-0.2002|
|commercial bank deposit volume in<br>2009/GDP (log)|-0.1092|0.1481|0.1089|0.5493*|0.0382|0.0462|
|commercial bank loan volume in<br>2009/GDP (log)|-0.1862|-0.0212|0.0984|0.4963*|-0.0088|-0.0023|
|# commercial bank branches in<br>2009/100,000 Adults (log)|-0.0349|-0.062|0.008|0.1258|0.0087|-0.0058|
|# commercial bank branches in<br>2009/square km (log)|0.0009|0.0097|0.1315|0.1333|-0.0624|-0.0745|
|# commercial bank deposits in<br>2008/1,000 Adults (log)|-0.2456*|-0.1444|0.0135|0.0329|-0.213|-0.2401*|
|# commercial bank loans in<br>2008/1,000 Adults (log)|-0.1778|-0.1388|-0.0592|0.0314|-0.0774|-0.0674|
|commercial bank deposit volume in<br>2008/GDP (log)|-0.2592*|0.0722|-0.6835*|-0.6153*|0.0725|0.0825|
|commercial bank loan volume in<br>2008/GDP (log)|-0.2573*|-0.0576|-0.6255*|-0.4907*|0.0329|0.0385|
|# commercial bank branches in<br>2008/100,000 Adults (log)|0.0015|-0.0417|0.0115|0.1172|-0.1679|-0.1801|
|# commercial bank branches in<br>2008/square km (log)|-0.0084|0.0136|0.1383|0.131|-0.1553|-0.1683|
|<br>GDP per capita (log)|-0.1051|0.0579|0.0453|0.1436|-0.1328|-0.1374|
|Population density (log)|-0.0059|0.0572|0.1584|0.0781|-0.0674|-0.071|
|Expected real economic growth|-0.2149|0.0538|0.0588|-0.0401|-0.095|-0.0868|
|Inflation|-0.0234|0.0524|-0.1136|-0.1774|0.0434|0.0462|
|Gini coefficient|-0.0731|0.2739|0.1753|0.1029|0.3002*|0.3147*|
|Deposit insurance|0.1076|0.2011|-0.1277|-0.0939|-0.1866|-0.1945*|
|Electricity consumption<br>Land line and cell phone users|-0.1379<br>-0.0789|-0.2102<br>-0.1142|-0.0487<br>-0.0377|0.1461<br>0.0149|-0.1686<br>-0.087|-0.1902<br>-0.0999|
|Rd dit|01006|024|01649|01055|02406*|02497*|
|oa ensy|-.|-.|.|.|-.|-.|
|Absence of violence<br>|-0.1043<br>|-0.111<br>|0.068<br>|0.0377<br>|-0.1348<br>|-0.132<br>|
|Offshore financial center|-0.0748|0.0636|0.0573|0.0582|0.2822*|0.3132*|
|Credit information index|-0.1359|-0.0946|0.0276|0.0217|-0.0591|-0.0709|
|Concentration|-0.0076|-0.2208|-0.0444|-0.0047|0.0369|0.032|
|Government bank share|-0.113|0.2845|0.0195|-0.0548|0.0292|0.0283|
|Foreign bank share|0.2151|-0.0523|-0.2742*|-0.1691|0.0581|0.0425|
|Contract enforcement procedures|0.0396|0.0833|0.1065|0.1028|0.0536|0.0728|
|Contract enforcement time<br>|-0.1165<br>|0.0879<br>|0.0328<br>|0.1262<br>|0.1836<br>|0.1588<br>|
|Contract enforcement cost|0.1823|0.0131|0.0458|0.0257|0.0545|0.0746|
|Registry coverage|-0.2101|0.0103|0.0641|0.1047|-0.0235|-0.0368|
|KYC requirements|0.1764|0.0834|0.0583|0.0556|0.1865|0.1832|
|KYC exceptions|0.019|0.0421|0.3401*|0.3250*|0.1179|0.1307|

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