Bank Accounts for All: How Do State Policies Matter?

This paper examines the relationship between state policies and bank account ownership in developing countries. While existing literatures broadly support a ‘market‐enabling’ approach, consisting of limited direct state intervention and proportionate regulation, statistical analyses frequently rely on problematic measurement techniques. This study adopts a novel and more comprehensive approach by using a modified index constructed from expert evaluations. Using ordinary least squares regression, the analysis suggests a positive relationship between a market‐enabling state policy framework and increased bank account ownership among the total population, but the relationship diminishes among key subpopulations: adult women, rural adults and the poorest 40 per cent of adults. © 2020 John Wiley & Sons, Ltd.