PAWNBROKING INDUSTRY UK

Pawn broking Industry UK

Table of Contents

Chapter No. 1: Introduction3

Introduction4

Rationale:7

Aims and objectives8

Chapter No. 2 Literature Review10

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Substitutes or complements14

Pawnshops in UK: some background10

The distribution of pawnshops18

Pawnshop and microenterprise credit20

Conclusion24

Chapter No. 3 Methodology25

Research strategy25

Data26

Research Philosophy27

Research Approach28

Sample Group28

Research Instruments28

Limitations of the research29

Chapter No. 4 Analysis & Discussion30

Individual cluster analyses of pawnbrokers and Banks30

Nearest neighbor hierarchical clustering procedure31

K-function procedure32

Comparisons of results for the two clustering methods35

\Comparative market analyses of pawnbrokers versus Bank37

Comparisons of typical incomes for potential customers of financial institutions38

Comparisons of the relative access of potential customers to Banks and pawnbrokers43

Location of pawnbrokers and median-income p-values52

Demographic makeup of pawnbroker locations54

Location of pawnbrokers and minorities54

Chapter No.5 Summary and conclusions56

References58

List of Figures

Figure 1. Individual accessibility function.39

Figure 2. Institution counts for block-groups.45

Figure 3. Relative concentrations of pawnbrokers versus Banks.47

Figure 4. Relative concentrations of Banks.48

Figure 5. Income test results for pawnbrokers.51

Figure 6. Income test results for Banks.52

List of Tables

Table 1: Number of pawnbrokers and Banks30

Table 2: Comparison of clusters between NNHC and K-function36

Table 3: Median income of block-groups53

Chapter No. 1: Introduction

Introduction

The significance of prescribed economic intermediation in financial development and development has been emphasized by Gurley and Shaw (1956). They supply the analytical structure for investigating intermediation in later publications (see Gurley and Shaw, 1956; 1960). The accumulation of capital is accepted to be absolutely crucial for financial growth. The economic intermediations permit the capital to be held obscurely through changed assets to help financial development.

The clues in the evolving nations, as cited by Bouman (1988), displays that the country finances still relies on the casual economic intermediation. Therefore, its significance rises in percentage to the grade of underdevelopment which has farther increased this interest. In UK, the pawnshop as the major casual economic organisation has developed in significance over the past couple of years. The matters that could be increased here are: first, how significant is pawnbroking in asset mobilization? Second, how could pawnshops be utilised to investment the microenterprises?

There are no authorized approximates of the significance of pawnshops as a source of borrowing in the UK economic market. The Central Bank of UK does not assemble facts and numbers on pawnbroking and does not encompass an approximate of pawnshop borrowing in its statistics on total household credit. However, by discovering the facts and numbers supplied by a couple of pawnshops, it can be glimpsed that the total pawnshop borrowing is approximated about RM125 million at the end of 1995 (of which RM67 million is new credit). For evaluation reasons, the oustanding borrowing at the end of 1995 amounted to RM306.6 billion, of which RM174.2 billion was accounted by financial banks borrowings and RM62.7 billion by investment companies.

By these assesses, pawnshops emerge to warrant the rank as a little bank as they are the source for only about 0.03 percent of new borrowing in the UK economic market. By other assesses, pawnbroking apparently performances a key function in the UK economic market. At the end of 1995, there were 282 pawnshops in UK or about one pawnshop for every five parts of financial ...