Is small beautiful? Financial structure, size and access to finance

T.H.L. Beck, A. Demirgüc-Kunt, D.E.M. Singer

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Combining two unique data sets, this paper explores the relationship between financial structure and firms’ access to financial services. Specifically, it considers the importance of three different types of financial institutions: low-end financial institutions, specialized lenders, and banks. Two findings stand out. First, dominance of the financial system by banks is associated with lower use of financial services by firms of all sizes, while low-end financial institutions and specialized lenders seem particularly suited to ease access to finance in low-income countries. Second, there is no evidence that smaller institutions are better in providing access to finance.
Original languageEnglish
Pages (from-to)19-33
JournalWorld Development
Volume52
Publication statusPublished - 2013

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financial services
size structure
finance
financial system
financial service
bank
income
firm
low income
Access to finance
Financial structure
Financial institutions
evidence
Financial services

Cite this

Beck, T. H. L., Demirgüc-Kunt, A., & Singer, D. E. M. (2013). Is small beautiful? Financial structure, size and access to finance. World Development, 52, 19-33.
Beck, T.H.L. ; Demirgüc-Kunt, A. ; Singer, D.E.M. / Is small beautiful? Financial structure, size and access to finance. In: World Development. 2013 ; Vol. 52. pp. 19-33.
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Beck, THL, Demirgüc-Kunt, A & Singer, DEM 2013, 'Is small beautiful? Financial structure, size and access to finance', World Development, vol. 52, pp. 19-33.

Is small beautiful? Financial structure, size and access to finance. / Beck, T.H.L.; Demirgüc-Kunt, A.; Singer, D.E.M.

In: World Development, Vol. 52, 2013, p. 19-33.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Is small beautiful? Financial structure, size and access to finance

AU - Beck, T.H.L.

AU - Demirgüc-Kunt, A.

AU - Singer, D.E.M.

PY - 2013

Y1 - 2013

N2 - Combining two unique data sets, this paper explores the relationship between financial structure and firms’ access to financial services. Specifically, it considers the importance of three different types of financial institutions: low-end financial institutions, specialized lenders, and banks. Two findings stand out. First, dominance of the financial system by banks is associated with lower use of financial services by firms of all sizes, while low-end financial institutions and specialized lenders seem particularly suited to ease access to finance in low-income countries. Second, there is no evidence that smaller institutions are better in providing access to finance.

AB - Combining two unique data sets, this paper explores the relationship between financial structure and firms’ access to financial services. Specifically, it considers the importance of three different types of financial institutions: low-end financial institutions, specialized lenders, and banks. Two findings stand out. First, dominance of the financial system by banks is associated with lower use of financial services by firms of all sizes, while low-end financial institutions and specialized lenders seem particularly suited to ease access to finance in low-income countries. Second, there is no evidence that smaller institutions are better in providing access to finance.

M3 - Article

VL - 52

SP - 19

EP - 33

JO - World Development

JF - World Development

SN - 0305-750X

ER -

Beck THL, Demirgüc-Kunt A, Singer DEM. Is small beautiful? Financial structure, size and access to finance. World Development. 2013;52:19-33.