We examine how the geographical proximity to a new microfinance bank branch affects the use of bank accounts by low-income households. We study the expansion of the branch network of ProCredit banks in South-East Europe between 2006 and 2010. The analysis is based on household-level survey data...

We exploit proprietary information on severed correspondent banking relationships (due to the stricter enforcement of financial crime regulation) to assess how payment disruptions impede cross-border trade. Using firm-level export data from emerging Europe, we show that when local respondent...