“…Our analysis is related to a burgeoning body of research that studies the relationship between remittances and broad financial development. Findings from this literature indicate that while remittances are often used to overcome credit constraints in financially underdeveloped economies (Giuliano and Ruiz‐Arranz, ; Ramirez and Sharma, ; Arezki and Bruckner, ; Combes et al ., ; Anzoategui et al ., ), their aggregate effect on financial deepening is on balance positive (Hunte, ; Martinez Peria et al ., ; Billmeier and Massa, ; Gupta et al ., ; Aggarwal et al ., ; Demirguc‐Kunt et al ., ). However, there is also some (limited) micro‐level evidence suggesting that the likelihood of a household having a bank account does not depend on the volume of remittances received (Mogilevsky and Atamanov, ; Brown et al ., ).…”