Is There a Link Between Financial Exclusion and Over-Indebtedness? Evidence from Czech Peripheral Municipalities

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43310%2F20%3A43918113" target="_blank" >RIV/62156489:43310/20:43918113 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.1016/j.jrurstud.2020.07.010" target="_blank" >https://doi.org/10.1016/j.jrurstud.2020.07.010</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.jrurstud.2020.07.010" target="_blank" >10.1016/j.jrurstud.2020.07.010</a>

Result language

angličtina

Original language name

Is There a Link Between Financial Exclusion and Over-Indebtedness? Evidence from Czech Peripheral Municipalities

Original language description

This paper investigates the determinants of the over-indebtedness of inhabitants in particular municipalities in the Czech Republic. We draw on the theory of regional segmentation of financial markets, which foresees credit rationing in peripheral regions and empirically investigate the role that attractiveness of potential banking clients may play in the level of over-indebtedness in particular regions. We assume that regions with a higher concentration of non-bankable people suffer from a low concentration of bank services as the banks are not interested in serving people who do not meet their credit requirements. The findings from testing our empirical model indicate that regions with a higher level of non-bankable people have a higher concentration of over-indebted inhabitants. Our paper thus contributes to the nascent empirical verification of the theory of regional segmentation of financial markets. In conclusion, our policy recommendation - to support a socially-oriented financial industry, which could fulfil a niche in peripheral financial markets - could help in the battle against the pandemic of over-indebtedness and repossessions with its all negative consequences.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2020

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Rural Studies

ISSN

0743-0167

e-ISSN

—

Volume of the periodical

78

Issue of the periodical within the volume

August

Country of publishing house

GB - UNITED KINGDOM

Number of pages

10

Pages from-to

457-466

UT code for WoS article

000567797800018

EID of the result in the Scopus database

2-s2.0-85088933830