Does Banking Competition Alleviate or Worsen Credit Constraints Faced by Small and Medium Enterprises? Evidence from China (Replaced by EBC DP 2012-007)

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
PublisherEBC
Volume2011-001
Publication statusPublished - 2011

Publication series

NameEBC Discussion Paper
Volume2011-001

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

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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 EBC DP 2012-007). / Chong, T.T.L.; Lu, L.; Ongena, S.

Tilburg : EBC, 2011. (EBC Discussion Paper; Vol. 2011-001).

Research output: Working paperDiscussion paperOther research output

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KW - Banking Competition

KW - SMEs Financing

KW - Credit Constraints

M3 - Discussion paper

VL - 2011-001

T3 - EBC Discussion Paper

BT - Does Banking Competition Alleviate or Worsen Credit Constraints Faced by Small and Medium Enterprises? Evidence from China (Replaced by EBC DP 2012-007)

PB - EBC

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