Indicator 8.10.1:Number of commercial bank branches per 100,000 adults (b) number of automated teller machines (ATMs) per 100,000 adults
Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.
Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Definition and Rationale
This indicator has two components. They are defined as the number of (a) commercial bank branches per 100,000 adults, and (b) number of automated teller machines (ATMs) per 100,000 adults in a country.
The first component of the indicator refers to the number of commercial banks branches as reported by the Central Bank or the main financial regulator. To make the indicator meaningful for cross-country comparison, the number of commercial banks branches are scaled per 100,000 adults.
The second component of the indicators refers to the number of ATMs in the country for all types of financial institutions including commercial banks, non-deposit taking microfinance institutions, deposit taking micro finance institutions, credit union and financial cooperatives as reported by the Central Bank or the main financial regulator. To make the indicator meaningful for cross-country comparison, the number of ATMs are scaled per 100,000 adults.
The adult population is defined as those aged 15 and above.
Rationale and Interpretation:
Access to and use of formal financial services is essential. Services such as savings, insurance, payments, credit and remittances allow people to manage their lives, plan and pay expenses, grow their businesses and improve their overall welfare. As banks remain one of the key institutions for access to formal financial services, having an accessible bank branch is an important initial point of access to financial services and therefore use of them. Bank branches are complemented by other important points of access such as automated teller machines of all formal financial institutions, which can extend financial services to remote locations. Therefore, this indicator is a direct measure of progress on access to financial services and banking.
Data Sources and Collection Method
The Central Bank or the main financial regulator collects data from the financial institutions and service providers in the country and reports aggregates.
Method of Computation and Other Methodological Considerations
The two sub-indicators are calculated as follows:
Comments and limitations: N/A
Proxy, alternative and additional indicators: N/A
Disaggregation at the urban/rural level would be useful.