Bank Financing for SMEs

Evidence Across Countries and Bank-Ownership Types

T.H.L. Beck, A. Demirgüc-Kunt, M. Martinez Peria

Research output: Working paperDiscussion paperOther research output

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Abstract

Using data for 91 large banks from 45 countries, this paper finds few differences in the extent, type, and pricing of SME loans across foreign, private, and government-owned banks, even though different bank ownership types apply different lending technologies and have different organizational structures. Instead, we find significant differences across banks in developed and developing countries, driven by differences in the economic, institutional, and legal environment, as opposed to by differences in lending technologies and organizational structures. Finally, the link between lending technologies, organizational structures, and SME financing is not consistent with the conventional view that SME lending is based on “relationship lending”.
Original languageEnglish
Place of PublicationTilburg
PublisherFinance
Number of pages30
Volume2009-71
Publication statusPublished - 2009

Publication series

NameCentER Discussion Paper
Volume2009-71

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Small and medium-sized enterprises
Bank financing
Bank ownership
Lending
Organizational structure
Loans
Legal environment
Developing countries
Financing
Economic environment
Government
Relationship lending
Institutional environment
Pricing
Developed countries

Keywords

  • Small and Medium Enterprises
  • Bank Ownership
  • Lending Technology
  • Access to Finance

Cite this

Beck, T. H. L., Demirgüc-Kunt, A., & Martinez Peria, M. (2009). Bank Financing for SMEs: Evidence Across Countries and Bank-Ownership Types. (CentER Discussion Paper; Vol. 2009-71). Tilburg: Finance.
Beck, T.H.L. ; Demirgüc-Kunt, A. ; Martinez Peria, M. / Bank Financing for SMEs : Evidence Across Countries and Bank-Ownership Types. Tilburg : Finance, 2009. (CentER Discussion Paper).
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abstract = "Using data for 91 large banks from 45 countries, this paper finds few differences in the extent, type, and pricing of SME loans across foreign, private, and government-owned banks, even though different bank ownership types apply different lending technologies and have different organizational structures. Instead, we find significant differences across banks in developed and developing countries, driven by differences in the economic, institutional, and legal environment, as opposed to by differences in lending technologies and organizational structures. Finally, the link between lending technologies, organizational structures, and SME financing is not consistent with the conventional view that SME lending is based on “relationship lending”.",
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Beck, THL, Demirgüc-Kunt, A & Martinez Peria, M 2009 'Bank Financing for SMEs: Evidence Across Countries and Bank-Ownership Types' CentER Discussion Paper, vol. 2009-71, Finance, Tilburg.

Bank Financing for SMEs : Evidence Across Countries and Bank-Ownership Types. / Beck, T.H.L.; Demirgüc-Kunt, A.; Martinez Peria, M.

Tilburg : Finance, 2009. (CentER Discussion Paper; Vol. 2009-71).

Research output: Working paperDiscussion paperOther research output

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T2 - Evidence Across Countries and Bank-Ownership Types

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AU - Demirgüc-Kunt, A.

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Beck THL, Demirgüc-Kunt A, Martinez Peria M. Bank Financing for SMEs: Evidence Across Countries and Bank-Ownership Types. Tilburg: Finance. 2009. (CentER Discussion Paper).