Bank competition, financing obstacles, and access to credit

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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:	2003/04/11	Document Date:	2003/03/31
Document Type:	Policy Research Working Paper	Language:	English
Report Number:	WPS2996	Sub Sectors:	Micro- and SME finance; Banking
SubTopics:	Payment Systems & Infrastructure; Financial Crisis Management & Restructuring; Housing Finance; Economic Theory & Research; Banks & Banking Reform; Financial Intermediation; Decentralization	Volume 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 Type		Description	File Size (mb)

	PDF 56 pages	Official version*	3.92 (approx.)
	Text	Text version**


Light-Weight Documents Lighter (less MB) documents which may or may not be the final, official version
File Type		Description	File Size (mb)

	PDF 52 pages	WPS2996	0.13

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** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
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