Click here for search results
Bank competition, financing obstacles, and access to credit, Volume 1
 
Author:Beck, Thorsten; Demirguc-Kant, Asl'; Maksimovic, Vojislav; Collection Title:Policy, Research working paper series ; no. WPS 2996
Date Stored:2003/04/11Document Date:2003/03/31
Document Type:Policy Research Working PaperSubTopics:Payment Systems & Infrastructure; Financial Crisis Management & Restructuring; Housing Finance; Economic Theory & Research; Banks & Banking Reform; Financial Intermediation; Decentralization
Language:EnglishReport Number:WPS2996
Sub Sectors:Micro- and SME finance; BankingVolume No:1

Summary: Theory makes ambiguous predictions about the effects of bank concentration on access to external finance. Using a unique data base for 74 countries of financing obstacles and financing patterns for firms of small, medium, and large size, the authors assess the effects of banking market structure on financing obstacles and the access of firms to bank finance. The authors find that bank concentration increases financing obstacles and decreases the likelihood of receiving bank finance, with the impact decreasing in size. The relation of bank concentration and financing obstacles is dampened in countries with well developed institutions, higher levels of economic and financial development, and a larger share of foreign-owned banks. The effect is exacerbated by more restrictions on banks' activities, more government interference in the banking sector, and a larger share of government-owned banks. Finally, it is possible to alleviate the negative impact of bank concentration on access to finance by reducing activity restrictions.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 56 pagesOfficial version*3.92 (approx.)
TextText version**
How To Order
Light-Weight Documents
Lighter (less MB) documents which may or may not be the final, official version
File TypeDescriptionFile Size (mb)
PDF 52 pagesWPS29960.13

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/IM38WO6ZS0