Banking is the degree and level of use that a population within an economy makes of banking products and services.

In the field of the economy, the degree of bankarization expresses the intensity and impact that the banking network has on the economy, and also reflects the degree of progress of a country's financial system.

In this way, with this term we refer to the intensity of use of the financial system by the general population of a territory, and the degree of penetration of financial institutions in the economy and development of a country.

Products and services referred to by bankarization

The services included in bankarization, in addition to traditional credit and savings products, comprise those complex and innovative products that are part of the financial system's sales portfolio, such as funds, pension plans, debt issues, payment instruments ... Thus, the term is related to ease of access, degree of penetration into the economy and level of use of resources by the population.

Ways to measure the degree of bankarization

The way to measure bankarization can be:


The degree of bankarization has been growing highly during the last century, until completing daily services and online access to financial institutions, and being able to carry out operations instantly in any physical place or not.

Its growth serves, among other things, to analyze the robustness and development of a country's financial systems, measure the degree of human development and qualify the economy of a territory. In addition, it largely reflects the financial culture of citizens and allows establishing strategies to interact in the markets and means of payment.

Tags:  finance culture banks 

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