Bank branching and economic development: A Bayesian quantile regression approach

This article examines the association between physical bank branches and economic growth from a global perspective. Despite the rise of internet banking, physical access to financial services remains crucial. Studies have shown a link between financial development, physical bank presence, and economic growth, but these studies have mostly been limited to single-country analyses, or subnational settings. To extend this research, we consider a large sample of countries and employ a Bayesian quantile regression approach to assess the varying associations between bank branching and development. This method allows for an evaluation of whether the relationship differs for poorer and richer countries. Results show that the stage of development is critical when assessing the relationship between bank branch networks and development, and that the link is particularly weak in some geographical areas.

Cuenca-de-Armas, R., M.T. Balaguer-Coll, L. Caldirola, D. Conesa and E. Tortosa-Ausina (2026). «Bank branching and economic development: A Bayesian quantile regression approach», Finance Research Letters 107, 110331. https://doi.org/10.1016/j.frl.2026.110331.