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

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2020

Kód důvěrnosti údajů

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

Název periodika

Journal of Rural Studies

ISSN

0743-0167

e-ISSN

—

Svazek periodika

78

Číslo periodika v rámci svazku

August

Stát vydavatele periodika

GB - Spojené království Velké Británie a Severního Irska

Počet stran výsledku

10

Strana od-do

457-466

Kód UT WoS článku

000567797800018

EID výsledku v databázi Scopus

2-s2.0-85088933830