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

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 paper › Discussion paper › Other 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 language	English
Place of Publication	Tilburg
Publisher	EBC
Volume	2011-001
Publication status	Published - 2011

Publication series

Name	EBC Discussion Paper
Volume	2011-001

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty
SDG 8 Decent Work and Economic Growth
SDG 9 Industry, Innovation, and Infrastructure

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{\textquoteright}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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AU - Chong, T.T.L.

AU - Lu, L.

AU - Ongena, S.

N1 - This is also CentER Discussion Paper 2011-006

PY - 2011

Y1 - 2011

N2 - 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.

AB - 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.

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

CY - Tilburg

ER -

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

Abstract

Publication series

UN SDGs

Keywords

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Cite this