Corporate Governance and Access to Finance - ESBG

Chart 8.Specific Corporate Governance Components and Accessto Finance (i)Separation of CEO/Chairpersonand average depositsAudit/Rating/Internal Codeand average depositsSource: Own elaboration. Afi, Analistas Financieros Internacionales.Chart 9.1 shows that the average deposit size is also negatively correlatedwith the score in the World Bank Regulatory Quality index. This suggeststhat market friendly policies or the adequacy of banking supervision,as well as the perception of a low burden of regulation in areas such asforeign trade and business development, tend to increase financialaccess. Chart 9.2 illustrates how the clarity in the Access to Financeobjectives in the mission statement improves financial inclusion: having aclear objective of improving Access to Finance is negatively correlatedwith the average deposit size.On the other hand, the elements of the Country-level CorporateGovernance index do not seem in general to be a relevant factor whenobserving the different levels of Access to Finance – as measured bydeposit size. Charts 10.1 and 10.2 show the country CorporateGovernance index components that most contribute to achieving thenegative relation between Corporate Governance and average depositsize. These components are: (i) the combined indicator of depth of creditinformation, coverage of public credit registries and private creditbureaus, and (ii) the Financial Development indicator.84