Corporate Governance and Access to Finance - ESBG

5.2.1. Corporate Governance and Average Deposit SizeWhen considering the Average Deposit Size as a measure of Access toFinance we would expect a negative relationship between the twovariables. As can be seen in Chart 6 below, we find indeed a negativerelationship between both variables in the case of developing countries.For industrial countries the correlation is less clear and, in any case,the small number of observations would seriously question the reliabilityof any such correlation.The rationale for the observed correlation, in the case of developingcountries, has to do with the fact that as the quality of the CorporateGovernance practices of financial institutions with a specific mandate forpromoting Access to Finance improves, these financial institutions outreachalso increases, which in turn is reflected in a lower average deposit.Chart 6. Corporate Governance and Access to Finance –measured as average deposit sizeSource: Own elaboration. Afi, Analistas Financieros Internacionales.The tendency line helps to visualise the correlation between the Overall Corporate Governanceindex at the country level and Access to Finance.82