Banking financing for SME's: Evidence across countries and bank ownership types

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

Research output: Contribution to journalArticleScientificpeer-review

295 Downloads (Pure)

Abstract

Using data for 91 large banks from 45 countries, this paper finds that foreign, domestic private, and government-owned banks use different lending technologies and organizational structures for SME financing. The extent, type, and pricing of SME loans, however, is not strongly correlated with lending technologies and organizational structures, suggesting that SME financing need not be based only on “relationship lending”. Consistent with these results, we find few significant differences in the extent, type, and pricing of SME loans across bank types. Instead, we find significant differences across developed and developing countries, driven by differences in the institutional and legal environment.
Original languageEnglish
Pages (from-to)35-54
JournalJournal of Financial Services Research
Volume39
Issue number1-2
DOIs
Publication statusPublished - 2011

Fingerprint

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

Keywords

  • bank financing
  • small and medium-sized enterprises
  • small and medium-size enterprises
  • business environment
  • financing constraints
  • lending techniques

Cite this

Beck, T.H.L. ; Demirgüc-Kunt, A. ; Martinez Peria, M. / Banking financing for SME's : Evidence across countries and bank ownership types. In: Journal of Financial Services Research. 2011 ; Vol. 39, No. 1-2. pp. 35-54.
@article{c4d491c92cc640f6ad55a8f6b56c4f63,
title = "Banking financing for SME's: Evidence across countries and bank ownership types",
abstract = "Using data for 91 large banks from 45 countries, this paper finds that foreign, domestic private, and government-owned banks use different lending technologies and organizational structures for SME financing. The extent, type, and pricing of SME loans, however, is not strongly correlated with lending technologies and organizational structures, suggesting that SME financing need not be based only on “relationship lending”. Consistent with these results, we find few significant differences in the extent, type, and pricing of SME loans across bank types. Instead, we find significant differences across developed and developing countries, driven by differences in the institutional and legal environment.",
keywords = "bank financing, small and medium-sized enterprises, small and medium-size enterprises, business environment, financing constraints, lending techniques",
author = "T.H.L. Beck and A. Demirg{\"u}c-Kunt and {Martinez Peria}, M.",
note = "Appeared earlier as CentER DP 2009-71",
year = "2011",
doi = "10.1007{\%}2Fs10693-010-0085-4",
language = "English",
volume = "39",
pages = "35--54",
journal = "Journal of Financial Services Research",
issn = "0920-8550",
publisher = "Springer Netherlands",
number = "1-2",

}

Banking financing for SME's : Evidence across countries and bank ownership types. / Beck, T.H.L.; Demirgüc-Kunt, A.; Martinez Peria, M.

In: Journal of Financial Services Research, Vol. 39, No. 1-2, 2011, p. 35-54.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Banking financing for SME's

T2 - Evidence across countries and bank ownership types

AU - Beck, T.H.L.

AU - Demirgüc-Kunt, A.

AU - Martinez Peria, M.

N1 - Appeared earlier as CentER DP 2009-71

PY - 2011

Y1 - 2011

N2 - Using data for 91 large banks from 45 countries, this paper finds that foreign, domestic private, and government-owned banks use different lending technologies and organizational structures for SME financing. The extent, type, and pricing of SME loans, however, is not strongly correlated with lending technologies and organizational structures, suggesting that SME financing need not be based only on “relationship lending”. Consistent with these results, we find few significant differences in the extent, type, and pricing of SME loans across bank types. Instead, we find significant differences across developed and developing countries, driven by differences in the institutional and legal environment.

AB - Using data for 91 large banks from 45 countries, this paper finds that foreign, domestic private, and government-owned banks use different lending technologies and organizational structures for SME financing. The extent, type, and pricing of SME loans, however, is not strongly correlated with lending technologies and organizational structures, suggesting that SME financing need not be based only on “relationship lending”. Consistent with these results, we find few significant differences in the extent, type, and pricing of SME loans across bank types. Instead, we find significant differences across developed and developing countries, driven by differences in the institutional and legal environment.

KW - bank financing

KW - small and medium-sized enterprises

KW - small and medium-size enterprises

KW - business environment

KW - financing constraints

KW - lending techniques

U2 - 10.1007%2Fs10693-010-0085-4

DO - 10.1007%2Fs10693-010-0085-4

M3 - Article

VL - 39

SP - 35

EP - 54

JO - Journal of Financial Services Research

JF - Journal of Financial Services Research

SN - 0920-8550

IS - 1-2

ER -