**Banks Or Buddies - Where Do People Borrow Money From?**
Banks Or Buddies - Where Do People Borrow Money From?
When making the decision to borrow money, do you turn to friends and family for financial help, or do you go to a financial institution like a bank or credit card company?
On a country-to-country basis, this choice often depends on a mix of various factors, including the availability of financial services, financial literacy (https://www.visualcapitalist.com/7-major-flaws-global-financial-system/), and the cultural approach to the very concept of lending itself.
In these graphics, Visual Capitalist's Richie Lionell sheds some light (https://www.visualcapitalist.com/cp/borrow-money-country-income-level/)on where people borrow money from, using the 2021 Global Findex Database (https://www.worldbank.org/en/publication/globalfindex/Data#sec1) published by the World Bank.
Borrowing From Financial Institutions
To compare borrowing practices across both location and income level, the dataset features survey results from respondents aged 15+ and groups countries by region _except for high-income countries_, which are grouped together.
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In 2021, most individuals in high income economies borrowed money from formal financial institutions.
CountryRegionBorrowed from a financial institutionCanadaHigh income81.01%IsraelHigh income79.52%IcelandHigh income73.36%Hong Kong SAR, ChinaHigh income70.01%Korea, Rep.High income68.64%NorwayHigh income66.82%United StatesHigh income66.21%Taiwan, ChinaHigh income61.95%SwitzerlandHigh income61.40%JapanHigh income61.19%New ZealandHigh income60.38%AustraliaHigh income57.29%AustriaHigh income56.52%ItalyHigh income55.01%United KingdomHigh income54.98%GermanyHigh income54.68%IrelandHigh income54.11%DenmarkHigh income53.16%FinlandHigh income52.98%SpainHigh income51.92%SwedenHigh income48.69%BelgiumHigh income47.98%FranceHigh income44.37%SingaporeHigh income42.82%SloveniaHigh income42.36%UruguayHigh income42.01%BrazilLatin America & Caribbean (excluding high income)40.75%ChinaEast Asia & Pacific (excluding high income)39.19%MaltaHigh income38.95%TürkiyeEurope & Central Asia (excluding high income)37.84%NetherlandsHigh income34.45%Slovak RepublicHigh income34.41%MongoliaEast Asia & Pacific (excluding high income)34.39%UkraineEurope & Central Asia (excluding high income)34.13%EstoniaHigh income33.64%CroatiaHigh income33.03%Saudi ArabiaHigh income32.38%PolandHigh income31.92%Czech RepublicHigh income31.33%CyprusHigh income31.25%CambodiaEast Asia & Pacific (excluding high income)30.89%ArgentinaLatin America & Caribbean (excluding high income)30.81%PortugalHigh income30.44%KazakhstanEurope & Central Asia (excluding high income)29.76%Russian FederationEurope & Central Asia (excluding high income)29.75%ThailandEast Asia & Pacific (excluding high income)28.26%BulgariaEurope & Central Asia (excluding high income)26.36%ArmeniaEurope & Central Asia (excluding high income)26.17%Iran, Islamic Rep.Middle East & North Africa (excluding high income)25.11%ChileHigh income24.20%GeorgiaEurope & Central Asia (excluding high income)23.89%EcuadorLatin America & Caribbean (excluding high income)23.23%LatviaHigh income22.74%United Arab EmiratesHigh income22.46%KenyaSub-Saharan Africa (excluding high income)22.18%North MacedoniaEurope & Central Asia (excluding high income)22.10%PeruLatin America & Caribbean (excluding high income)21.95%Dominican RepublicLatin America & Caribbean (excluding high income)21.65%Bosnia and HerzegovinaEurope & Central Asia (excluding high income)21.30%Sri LankaSouth Asia21.29%NamibiaSub-Saharan Africa (excluding high income)20.97%SerbiaEurope & Central Asia (excluding high income)20.65%GreeceHigh income20.11%MauritiusSub-Saharan Africa (excluding high income)20.09%BoliviaLatin America & Caribbean (excluding high income)19.30%RomaniaEurope & Central Asia (excluding high income)19.14%HungaryHigh income18.93%UgandaSub-Saharan Africa (excluding high income)18.62%South AfricaSub-Saharan Africa (excluding high income)18.22%ColombiaLatin America & Caribbean (excluding high income)18.10%Kyrgyz RepublicEurope & Central Asia (excluding high income)17.73%KosovoEurope & Central Asia (excluding high income)17.61%Costa RicaLatin America & Caribbean (excluding high income)17.46%PhilippinesEast Asia & Pacific (excluding high income)17.45%LiberiaSub-Saharan Africa (excluding high income)15.42%BangladeshSouth Asia14.22%NepalSouth Asia14.11%MalaysiaEast Asia & Pacific (excluding high income)13.48%AlbaniaEurope & Central Asia (excluding high income)13.39%MoldovaEurope & Central Asia (excluding high income)13.18%IndonesiaEast Asia & Pacific (excluding high income)12.86%TajikistanEurope & Central Asia (excluding high income)12.43%ParaguayLatin America & Caribbean (excluding …
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