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CodeIC.FRM.BKWC.ZS
Indicator NameFirms using banks to finance working capital (% of firms)
Short definitionPercentage of firms using bank loans to finance working capital.
Long definitionPercentage of firms using bank loans to finance working capital.
SourceEnterprise Surveys, World Bank (WB), uri: https://www.enterprisesurveys.org/en/data
TopicPrivate Sector & Trade: Business environment
DatasetWDI
Unit of measurePercentage
PeriodicityAnnual
Reference period2002-2024
Aggregation methodUnweighted average
Development relevanceThe Enterprise Surveys focus on the many factors that shape the business environment. These factors can be accommodating or constraining for firms and play an important role in whether a country will prosper or not. An accommodating business environment is one that encourages firms to operate efficiently. Such conditions strengthen incentives for firms to innovate and to increase productivity—key factors for sustainable development. A more productive private sector, in turn, expands employment and contributes taxes necessary for public investment in health, education, and other services. In contrast, a poor business environment increases the obstacles to conducting business activities and decreases a country’s prospects for reaching its potential in terms of employment, production, and welfare. The Enterprise Surveys provide indicators of how firms finance their operations and of the characteristics of their financial transactions. For example, Enterprise Surveys provide indicators that compare the relative use of various sources to finance investment. Excessive reliance on internal funds is a sign of potentially inefficient financial intermediation. Another set of indicators measures the use of financial markets by individual firms. It presents the percentage of working capital that is financed by external sources to the firm, and a measure of the burden imposed by loan requirements measured by collateral levels relative to the value of the loans. Additional indicators focus on the use of financial services by private firms both on the credit side, by measuring the percentage of firms with bank loans or lines or credit, and on the deposit mobilization side, by measuring the percentage of firms with checking or savings accounts.
License URLhttps://datacatalog.worldbank.org/public-licenses#cc-by
License TypeCC BY-4.0
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