Firms using banks to finance investment (% of firms) - Country Ranking

Definition: Firms using banks to finance investment are the percentage of firms using banks to finance investments.

Source: World Bank, Enterprise Surveys (http://www.enterprisesurveys.org/).

See also: Thematic map, Time series comparison

Find indicator:
Rank Country Value Year
1 St. Vincent and the Grenadines 55.80 2010
2 Mali 55.10 2016
3 Lebanon 53.10 2013
4 St. Lucia 52.20 2010
5 Lesotho 51.80 2016
6 Antigua and Barbuda 49.40 2010
7 Samoa 48.30 2009
8 Jordan 46.80 2013
9 Israel 46.40 2013
9 St. Kitts and Nevis 46.40 2010
11 Dominica 46.20 2010
12 Peru 45.90 2010
13 Paraguay 45.50 2017
13 Barbados 45.50 2010
15 Germany 45.00 2005
16 Chile 44.80 2010
17 Turkey 44.20 2013
17 Jamaica 44.20 2010
19 Brazil 43.70 2009
20 Sri Lanka 43.60 2011
21 Nicaragua 43.40 2016
22 Kenya 43.20 2013
23 Vanuatu 41.40 2009
24 Korea 39.90 2005
25 Dominican Republic 38.60 2016
26 Bosnia and Herzegovina 38.00 2013
27 Mauritius 37.50 2009
28 Ireland 37.40 2005
28 Slovak Republic 37.40 2013
28 Honduras 37.40 2016
31 Grenada 37.20 2010
32 Fiji 37.10 2009
33 Suriname 37.00 2010
33 Bolivia 37.00 2017
35 Belize 36.70 2010
35 Trinidad and Tobago 36.70 2010
37 Papua New Guinea 36.60 2015
37 Indonesia 36.60 2015
39 Ecuador 35.60 2017
40 Malaysia 35.30 2015
40 Cabo Verde 35.30 2009
40 Venezuela 35.30 2010
43 Colombia 35.00 2010
44 South Africa 34.80 2007
44 Morocco 34.80 2013
46 Guyana 34.50 2010
47 Czech Republic 34.30 2013
48 Tonga 33.90 2009
49 Namibia 33.50 2014
50 Estonia 32.70 2013
50 Botswana 32.70 2010
52 Spain 32.60 2005
53 Bhutan 32.20 2015
54 Poland 30.60 2013
55 Swaziland 30.40 2016
55 Slovenia 30.40 2013
57 Malawi 30.30 2014
57 India 30.30 2014
57 Ukraine 30.30 2013
57 Argentina 30.30 2010
61 Burundi 29.90 2014
62 Montenegro 29.60 2013
63 Vietnam 29.30 2015
64 Lithuania 28.00 2013
64 Romania 28.00 2013
66 Belarus 27.30 2013
67 Azerbaijan 27.10 2013
68 Serbia 27.00 2013
68 Croatia 27.00 2013
70 Guatemala 26.60 2010
71 Greece 25.90 2005
72 Togo 25.70 2016
73 Solomon Islands 25.60 2015
73 Burkina Faso 25.60 2009
75 Central African Republic 25.30 2011
76 El Salvador 25.20 2016
77 Portugal 24.40 2005
78 Djibouti 24.30 2013
79 Côte d'Ivoire 23.60 2016
80 Bulgaria 23.50 2013
81 Rwanda 23.30 2011
82 Tunisia 22.90 2013
83 Mongolia 22.70 2013
84 Hungary 22.60 2013
85 Costa Rica 22.20 2010
86 Niger 22.10 2017
87 Georgia 22.00 2013
88 Ghana 21.20 2013
89 Macedonia 20.90 2013
90 Syrian Arab Republic 20.70 2009
91 Moldova 20.00 2013
92 Bangladesh 19.80 2013
93 Liberia 19.40 2017
94 Senegal 19.20 2014
95 Tanzania 18.50 2013
96 Kyrgyz Republic 18.40 2013
97 Sweden 17.90 2014
98 Armenia 17.40 2013
99 Nepal 17.00 2013
100 Zimbabwe 16.70 2016
101 Kazakhstan 16.30 2013
102 Mexico 16.20 2010
103 Uzbekistan 16.10 2013
104 Lao PDR 15.90 2016
105 Cameroon 15.80 2016
106 Thailand 15.30 2016
107 China 14.70 2012
108 Egypt 14.60 2016
108 The Bahamas 14.60 2010
110 Uruguay 13.70 2010
111 Tajikistan 13.20 2013
112 Angola 13.10 2010
113 Madagascar 13.00 2013
114 Ethiopia 12.90 2015
115 Mauritania 12.80 2014
116 Timor-Leste 12.50 2015
117 Philippines 12.40 2015
118 Zambia 12.20 2013
119 Benin 12.00 2016
120 Eritrea 11.90 2009
121 Russia 11.30 2012
122 Albania 11.20 2013
123 Mozambique 10.50 2007
124 Guinea 9.20 2016
125 Algeria 8.90 2007
126 Pakistan 8.10 2013
126 Uganda 8.10 2013
128 Latvia 7.90 2013
129 Congo 7.70 2009
130 The Gambia 7.60 2006
131 Dem. Rep. Congo 7.10 2013
131 Myanmar 7.10 2016
133 Sierra Leone 7.00 2017
134 Nigeria 6.90 2014
135 Sudan 6.70 2014
136 Gabon 6.30 2009
137 Chad 4.20 2009
138 Yemen 3.80 2013
139 Iraq 2.70 2011
140 Cambodia 2.50 2016
141 Afghanistan 2.00 2014
142 Panama 1.20 2010
143 Guinea-Bissau 0.70 2006

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Development Relevance: Firms evaluating investment options, governments interested in improving business conditions, and economists seeking to explain economic performance have all grappled with defining and measuring the business environment. The firm-level data from Enterprise Surveys provide a useful tool for benchmarking economies across a large number of indicators measured at the firm level. Financial markets connect firms to lenders and investors, allowing firms to grow their businesses: creditworthy firms can obtain credit from financial intermediaries at competitive prices. But too often market imperfections and government-induced distortions limit access to credit and thus restrain growth. Excessive reliance on internal funds is a sign of potentially inefficient financial intermediation.

Limitations and Exceptions: The sampling methodology for Enterprise Surveys is stratified random sampling. In a simple random sample, all members of the population have the same probability of being selected and no weighting of the observations is necessary. In a stratified random sample, all population units are grouped within homogeneous groups and simple random samples are selected within each group. This method allows computing estimates for each of the strata with a specified level of precision while population estimates can also be estimated by properly weighting individual observations. The sampling weights take care of the varying probabilities of selection across different strata. Under certain conditions, estimates' precision under stratified random sampling will be higher than under simple random sampling (lower standard errors may result from the estimation procedure). The strata for Enterprise Surveys are firm size, business sector, and geographic region within a country. Firm size levels are 5-19 (small), 20-99 (medium), and 100+ employees (large-sized firms). Since in most economies, the majority of firms are small and medium-sized, Enterprise Surveys oversample large firms since larger firms tend to be engines of job creation. Sector breakdown is usually manufacturing, retail, and other services. For larger economies, specific manufacturing sub-sectors are selected as additional strata on the basis of employment, value-added, and total number of establishments figures. Geographic regions within a country are selected based on which cities/regions collectively contain the majority of economic activity. Ideally the survey sample frame is derived from the universe of eligible firms obtained from the country’s statistical office. Sometimes the master list of firms is obtained from other government agencies such as tax or business licensing authorities. In some cases, the list of firms is obtained from business associations or marketing databases. In a few cases, the sample frame is created via block enumeration, where the World Bank “manually” constructs a list of eligible firms after 1) partitioning a country’s cities of major economic activity into clusters and blocks, 2) randomly selecting a subset of blocks which will then be enumerated. In surveys conducted since 2005-06, survey documentation which explains the source of the sample frame and any special circumstances encountered during survey fieldwork are included with the collected datasets. Obtaining panel data, i.e. interviews with the same firms across multiple years, is a priority in current Enterprise Surveys. When conducting a new Enterprise Survey in a country where data was previously collected, maximal effort is expended to re-interview as many firms (from the prior survey) as possible. For these panel firms, sampling weights can be adjusted to take into account the resulting altered probabilities of inclusion in the sample frame.

Original Source Notes: All surveys were administered using the Enterprise Surveys methodology as outlined in the Methodology page which can be found from www.enterprisesurveys.org.

Statistical Concept and Methodology: Firm-level surveys have been conducted since the 1990's by different units within the World Bank. Since 2005-06, most data collection efforts have been centralized within the Enterprise Analysis Unit. Surveys implemented by the Enterprise Analysis Unit follow the Global Methodology. Private contractors conduct the Enterprise Surveys on behalf of the World Bank. Due to sensitive survey questions addressing business-government relations and bribery-related topics, private contractors, rather than any government agency or an organization/institution associated with government, are hired by the World Bank to collect the data. Confidentiality of the survey respondents and the sensitive information they provide is necessary to ensure the greatest degree of survey participation, integrity and confidence in the quality of the data. Surveys are usually carried out in cooperation with business organizations and government agencies promoting job creation and economic growth, but confidentiality is never compromised. The Enterprise Survey is answered by business owners and top managers. Sometimes the survey respondent calls company accountants and human resource managers into the interview to answer questions in the sales and labor sections of the survey. Typically 1200-1800 interviews are conducted in larger economies, 360 interviews are conducted in medium-sized economies, and for smaller economies, 150 interviews take place. The manufacturing and services sectors are the primary business sectors of interest. This corresponds to firms classified with ISIC codes 15-37, 45, 50-52, 55, 60-64, and 72 (ISIC Rev.3.1). Formal (registered) companies with 5 or more employees are targeted for interview. Services firms include construction, retail, wholesale, hotels, restaurants, transport, storage, communications, and IT. Firms with 100% government/state ownership are not eligible to participate in an Enterprise Survey. Occasionally, for a few surveyed countries, other sectors are included in the companies surveyed such as education or health-related businesses. In each country, businesses in the cities/regions of major economic activity are interviewed. In some countries, other surveys, which depart from the usual Enterprise Survey methodology, are conducted. Examples include 1) Informal Surveys- surveys of informal (unregistered) enterprises, 2) Micro Surveys- surveys fielded to registered firms with less than five employees, and 3) Financial Crisis Assessment Surveys- short surveys administered by telephone to assess the effects of the global financial crisis of 2008-09. The Enterprise Surveys Unit uses two instruments: the Manufacturing Questionnaire and the Services Questionnaire. Although many questions overlap, some are only applicable to one type of business. For example, retail firms are not asked about production and nonproduction workers. The standard Enterprise Survey topics include firm characteristics, gender participation, access to finance, annual sales, costs of inputs/labor, workforce composition, bribery, licensing, infrastructure, trade, crime, competition, capacity utilization, land and permits, taxation, informality, business-government relations, innovation and technology, and performance measures. Over 90% of the questions objectively ascertain characteristics of a country’s business environment. The remaining questions assess the survey respondents’ opinions on what are the obstacles to firm growth and performance. The mode of data collection is face-to-face interviews.

Aggregation method: Unweighted average

Periodicity: Annual