Skip to Main Navigation

Bank Lending for Inclusive Growth: Incentives Matter

November 17, 2020




View the Presentation (PDF)

  • Bank lending is a key driver of economic growth. However, large inefficiencies remain—particularly in developing countries—due to barriers that limit the flow of funds towards productive borrowers.

    In this Policy Research Talk, World Bank economist Claudia Ruiz-Ortega will discuss how access to novel datasets from banks, credit bureaus, and credit registries can help us understand the dynamics of bank lending, as well as the intended (and unintended) effects of public policies affecting banks.

    Drawing on research in Mexico and Peru, the talk will illustrate cases in which lenders lack incentives to allocate credit to productive borrowers or advance financial inclusion among SMEs. Highlighting the case of earmarked credit in Brazil, the talk will provide new insights on the strategies that banks adopt when distributing government-subsidized loans across firms. Finally, the talk will cover recent research on the effectiveness of policy initiatives aimed at supporting the banking sector during the COVID-19 emergency.  

  • Image

    Claudia Ruiz (Speaker)


    Claudia Ruiz is an Economist in the Finance and Private Sector Development Team of the Development Research Group. She joined the Bank in September 2011. Her research has focused on understanding the impact that access to finance has on individuals and firms, and the role that financial services have in promoting economic development. She holds a Ph.D. in Economics from UCLA.

    Mario Guadamillas (Discussant)

    Practice Manager, Finance Competitiveness & Innovation

    Mario Guadamillas is currently Practice Manager, Europe and Central Asia in the Finance, Competitiveness & Innovation Global Practice. Prior to this helped coordinate the joint IMF-WB Financial Sector Assessment Program (FSAP), the WB participation in the Financial Stability Board (FSB) and provided assistance to countries in the banking regulation and supervisory area. Previously he was a Senior Financial Economist for Latin America and the Caribbean, leading Bank operational work. Mario has numerous publications on financial sector issues, notably on financial infrastructure.


    Deon Filmer (Chair)

    Director of Research

    Deon Filmer is Director of the Research Group at the World Bank. He has previously served as Acting Research Manager in the Research Group, Co-Director of the World Development Report 2018: Learning to Realize Education’s Promise, and Lead Economist in the Human Development department of the Africa Region of the World Bank. He works on issues of human capital and skills, service delivery, and the impact of policies and programs to improve human development outcomes—with research spanning the areas of education, health, social protection, and poverty and inequality. He has published widely in refereed journals, including studies of the impact of demand-side programs on schooling and learning; the roles of poverty, gender, orphanhood, and disability in explaining education inequalities; and the determinants of effective service delivery.

  • The monthly Policy Research Talks showcase the latest findings of the World Bank’s research department, challenge and contribute to the institution’s intellectual climate, and re-examine conventional wisdom in current development theories and practice. These talks facilitate a dialogue between researchers and operational staff and inform World Bank operations both globally and within partner countries. Read More »