Does Banking Competition Alleviate or Worsen Credit Constraints Faced by Small and Medium Enterprises? Evidence from China (Replaced by CentER DP 2012-013)

T.T.L. Chong, L. Lu, S. Ongena

Research output: Working paperDiscussion paperOther research output

Abstract

Banking competition may enhance or hinder the financing of small and medium enterprises (SMEs). Using a survey on the financing of China’s SMEs combined with detailed bank branch information, we investigate how concentration in the local banking market affects the availability of credit. It is found that lower market concentration alleviates financing constraints. The un-concentrated presence of joint stock banks has a larger effect on alleviating credit constraints, while the presence of state-owned banks has a smaller effect, than the presence of city commercial banks.
Original languageEnglish
Place of PublicationTilburg
PublisherFinance
Volume2011-006
Publication statusPublished - 2011

Publication series

NameCentER Discussion Paper
Volume2011-006

Fingerprint

Financing
Credit constraints
China
Small and medium-sized enterprises
Banking competition
Bank branches
Financing constraints
Market concentration
Commercial banks
Banking
State-owned banks
Credit

Keywords

  • Banking Competition
  • SMEs Financing
  • Credit Constraints

Cite this

Chong, T. T. L., Lu, L., & Ongena, S. (2011). Does Banking Competition Alleviate or Worsen Credit Constraints Faced by Small and Medium Enterprises? Evidence from China (Replaced by CentER DP 2012-013). (CentER Discussion Paper; Vol. 2011-006). Tilburg: Finance.
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abstract = "Banking competition may enhance or hinder the financing of small and medium enterprises (SMEs). Using a survey on the financing of China’s SMEs combined with detailed bank branch information, we investigate how concentration in the local banking market affects the availability of credit. It is found that lower market concentration alleviates financing constraints. The un-concentrated presence of joint stock banks has a larger effect on alleviating credit constraints, while the presence of state-owned banks has a smaller effect, than the presence of city commercial banks.",
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Does Banking Competition Alleviate or Worsen Credit Constraints Faced by Small and Medium Enterprises? Evidence from China (Replaced by CentER DP 2012-013). / Chong, T.T.L.; Lu, L.; Ongena, S.

Tilburg : Finance, 2011. (CentER Discussion Paper; Vol. 2011-006).

Research output: Working paperDiscussion paperOther research output

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KW - SMEs Financing

KW - Credit Constraints

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BT - Does Banking Competition Alleviate or Worsen Credit Constraints Faced by Small and Medium Enterprises? Evidence from China (Replaced by CentER DP 2012-013)

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