Banking Market Concentration and Credit Availability to Small Businesses Report as inadecuate




Banking Market Concentration and Credit Availability to Small Businesses - Download this document for free, or read online. Document in PDF available to download.

Abstract

This paper examines how banking market concentration affects small businesses finance. Using the Survey of Small Business Finance, the empirical model show that bank concentration may adversely affect the amount of credit supplied to small businesses. We find that bank concentration decreases the L-C limits of firms significantly, while there is no statistically significant difference in L-C balance across banking markets. We also show that bank concentration lowers the overall debt-to-asset ratio of small firms that includes loans from nonbank institutions, suggesting that credit from non-bank institutions do not fully make up the effect of bank concentration.



Item Type: MPRA Paper -

Original Title: Banking Market Concentration and Credit Availability to Small Businesses-

Language: English-

Keywords: Small Business Finance, Banking Market Concentration-

Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and RegulationG - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages-





Author: Park, Yongjin

Source: https://mpra.ub.uni-muenchen.de/9265/



DOWNLOAD PDF




Related documents