Munich Personal RePEc Archive

Small Business Lending and the Bank-Branch Network

Petkov, Ivan (2015): Small Business Lending and the Bank-Branch Network.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
petkov_sblnetowrk.pdf

Download (3MB) | Preview

Abstract

I tests whether the market for small business lending is integrated by examining the exposure of different credit markets to localized economic shocks when they host the same bank network. In a unified approach I quantify the effect of a positive and a negative credit-supply on local activity. I show that the market for business loans provided by smaller banks is locally segmented. Businesses in areas with increased credit were not able to expand earlier with funds from other banks and were forced to wait for funding from their local banker. Businesses in areas with reduced credit were forced to lower their activity unable to substitute funding lost to more profitable projects elsewhere.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.