# **Appendix 2: Correlations (* shows 5 percent significance)**

||Accounts per<br>1,000 adults<br>in commercial<br>banks (logs)|Loans per<br>1,000 adults in<br>commercial<br>banks<br>(logs)|Value of<br>deposits in<br>2009 / GDP|Value of loans<br>in 2009 / GDP|Branches per<br>100,000 adults<br>in commercial<br>banks<br>(logs)|Branches per<br>square km in<br>commercial<br>banks<br>(logs)|
|---|---|---|---|---|---|---|
|# commercial bank deposits in<br>2009/1,000 Adults (log)<br>|1||||||
|# commercial bank loans in<br>2009/1,000 Adults (log)<br>|0.8461*|1|||||
|commercial bank deposit volume in<br>2009/GDP (log)|0.5295*|0.4820*|1||||
|commercial bank loan volume in<br>2009/GDP (log)|0.7030*|0.6939*|0.8950*|1|||
|# commercial bank branches in<br>2009/100,000 Adults (log)|0.7369*|0.7530*|0.4440*|0.6137*|1||
|# commercial bank branches in<br>2009/square km (log)|0.5955*|0.4870*|0.4264*|0.4816*|0.6468*|1|
|Δ # commercial bank deposits/1000<br>Adults (log)|-0.0729|-0.2166|-0.1092|-0.1862|-0.0349|0.0009|
|Δ # commercial bank loans/1000<br>Adults (log)|-0.0278|-0.0261|0.1481|-0.0212|-0.062|0.0097|
|Δ commercial bank deposit<br>volume/GDP (log)|0.0294|-0.0477|0.1089|0.0984|0.008|0.1315|
|Δ commercial bank loan<br>volume/GDP (log)|0.0816|0.0419|0.5493*|0.4963*|0.1258|0.1333|
|Δ # commercial bank<br>branches/100,000 Adults (log)|-0.1765|-0.2053|0.0382|-0.0088|0.0087|-0.0624|
|Δ # commercial bank<br>branches/square km (log)|-0.194|-0.2002|0.0462|-0.0023|-0.0058|-0.0745|
|# commercial bank deposits in<br>2008/1,000 Adults (log)|0.9847*|0.8661*|0.4637*|0.6623*|0.6923*|0.6004*|
|# commercial bank loans in<br>2008/1,000 Adults (log)|0.8407*|0.9936*|0.5105*|0.6794*|0.7851*|0.4956*|
|commercial bank deposit volume in<br>2008/GDP (log)|0.3583*|0.5376*|0.6512*|0.5486*|0.3479*|0.3220*|
|commercial bank loan volume in<br>2008/GDP (log)|0.4517*|0.6755*|0.3660*|0.5129*|0.4554*|0.3240*|
|# commercial bank branches in<br>2008/100,000 Adults (log)|0.7262*|0.7480*|0.3934*|0.5715*|0.9843*|0.6427*|
|# commercial bank branches in<br>2008/square km (log)|0.6094*|0.5091*|0.3972*|0.4610*|0.6339*|0.9955*|
|<br>GDP per capita (log)|0.7960*|0.8739*|0.4211*|0.6216*|0.7880*|0.5131*|
|Population density (log)|0.2479*|0.068|0.1940*|0.1315|0.047|0.7984*|
|Expected real economic growth|-0.1072|-0.2061|-0.0169|-0.0699|-0.0981|-0.013|
|Inflation|-0.1035|-0.1694|0.0706|-0.0088|-0.3779*|-0.3006*|
|Gini coefficient|-0.1326|0.2612|0.058|-0.0493|-0.168|-0.3777*|
|Deposit insurance|0.5657*|0.4827*|0.0708|0.1952*|0.4047*|0.2743*|
|Electricity consumption|0.6555*|0.7707*|0.3358*|0.5246*|0.6585*|0.3856*|
|Land line and cell phone users|0.8062*|0.9072*|0.4600*|0.6193*|0.7724*|0.5103*|
|Road density|0.5337*|0.4726*|0.2508*|0.3706*|0.4501*|0.8088*|
|Absence of violence|0.4825*|0.5389*|0.2227*|0.4133*|0.4863*|0.2656*|
|Offshore financial center|0.1758|0.22|0.3464*|0.2928*|0.1427|0.2305*|
|Credit information index|0.5263*|0.6486*|0.1504|0.3275*|0.5443*|0.3315*|
|Concentration|-0.3391*|-0.3528*|-0.0532|-0.0993|-0.1707|-0.1952*|
|Government bank share|-0.165|-0.2013|-0.15|-0.2418*|-0.2720*|-0.1468|
|Foreign bank share|0.0551|-0.0047|-0.1906|-0.1397|-0.0585|-0.0694|
|<br>Contract enforcement procedures|-0.3208*|-0.3256*|-0.1788|-0.2694*|-0.3265*|-0.3006*|
|Contract enforcement time|-0.1102|-0.1233|0.0651|-0.078|-0.1085|0.0223|
|Contract enforcement cost|-0.3307*|-0.2538*|-0.1146|-0.1897*|-0.3620*|-0.2169*|
|Registry coverage|0.4931*|0.5954*|0.3249*|0.4241*|0.5391*|0.2776*|
|KYC requirements|-0.1738|-0.159|-0.0535|-0.1985*|-0.2288*|-0.1664|
|KYC exceptions|-0.1011|0|0.0721|-0.0167|-0.1229|-0.0314|

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