# **Appendix 1: Variables**

|**Variable**|**Description**|**Source**|
|---|---|---|
|GDP per capita|Gross Domestic Product per capita in current dollars of 2007|World Development Indicators|
|Population Density|Total number of people in 2008 divided by the area of land measured in km2|World Development Indicators|
|Adult Population|Adult population in 2008. When the 2008 data are not available, we use the most recent|World Development Indicators|
|Population|Total population in 2008. When the 2008 data are not available, we use the most recent|World Development Indicators|
|Branches per adult|Number of branches per 100,000 adults|_Financial Access Database_(2009)|
|Branches per sq km|Number of branches per squared km|_Financial Access Database_(2009)|
|Credit Information Index|Scored on zero to six scale; scores increasing with scope, access, and quality of credit<br>information|World Bank_Doing Business_<br>Indicators, 2009|
|Gini|Gini coefficient for income inequality in each country (5-year average 2003-2007)|World Development Indicators|
|Inflation|10 year average (1998-2008) of the change in the CPI in each country|International Financial Statistics|
|Deposit Insurance|Equals one if the country had an explicit deposit insurance in 2003 and zero otherwise.|Demirgüç-Kunt., Karacaovali, and<br>Laeven (2005)|
|Electricity Consumption|Watts-hour consumption per capita in 2006|World Development Indicators|
|Phone Lines|Total telephone mainlines per thousand people (5-year average 2003-2007)|World Development Indicators|
|Road Density|Kilometers of roads per 100 km2 of land area (5-year average 2003-2007)|World Development Indicators|
|Absence of Violence|Sub-Index of Political Stability / No Violence, 2008|World Bank Governance Indicators|
|Offshore|Equals one if the country was defined by the IMF as an offshore center in 2008|IMF|
|Concentration|Share of deposits in the five largest banks|Barth, Caprio, and Levine (2004)|
|Government Bank Share|Percentage of banking system assets in banks 50% + owned by government|Barth, Caprio, and Levine (2004)|
|Foreign Bank Share|Percentage of banking system assets in banks 50% + owned by foreign entities<br>An index aggregating the documentation required to open a checking account. This|Barth, Caprio, and Levine (2004)|
|KYC Requirements|includes: (1) Government issued ID, (2) Any ID, (3) Proof of nationality or legal status, (4)<br>Proof of address, (5) Proof of income, (6) Proof of employment, and (7) Other|_Financial Access Database_(2009)|
|Basic Accounts (Exc.)|Equals one if there were regulatory exceptions for low income people in 2008 to the<br>documentation requirements for opening a bank checking account|_Financial Access Database_(2009)|
|Basic Accounts (Req.)|Equals one if there are, among the policies to promote access to finance, regulatory<br>requirements for banks to offer a basic or low fee account.|_Financial Access Database_(2009)|
|Documents Required|The average number of documents (in the 5 largest banks) required to open a checking<br>account in 2008.|World Bank,_Banking the Poor_<br>(2008)|
||Minimum balance required to open a checking account expressed as a percent of GDP. It|Beck, Demirgüç-Kunt., and|
|Min. Bal. open checking|combines two databases. When data were available in both data sets, the variable takes the<br>latest value.|Martinez-Peria (2008) and World<br>Bank, _Banking the Poor_ (2008)|

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