Bank Competition, Financing Obstacles, and Access to Credit
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.
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Bibliographic Details
| Main Authors: |
Maksimovic, Vojislav,
Beck, Thorsten,
Demirguc-Kunt, Asli |
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| Language: | English
en_US |
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| Published: |
World Bank, Washington, DC
2003-03
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| Subjects: | ACCUMULATION RATE,
ADVERSE SELECTION,
AGENCY PROBLEMS,
BANK LENDING,
BANK LOANS,
BANKING SECTOR,
BANKING SYSTEM,
BANKING SYSTEMS,
BANKS,
CAPITAL ACCUMULATION,
CASH FLOW,
CENTRAL BANKS,
COMPETITIVENESS,
CONSUMERS,
COOPERATIVE BANKS,
CORRELATION ANALYSIS,
CREDIT RATIONING,
DEPOSIT INSURANCE,
DEPOSITS,
ECONOMIC GROWTH,
ECONOMIC THEORY,
EMPIRICAL ANALYSIS,
EMPLOYMENT,
FINANCIAL INSTITUTIONS,
FINANCIAL INTERMEDIARY DEVELOPMENT,
FINANCIAL SERVICES,
FOREIGN BANKS,
GDP PER CAPITA,
GOVERNMENT REGULATIONS,
GROWTH RATE,
INEFFICIENCY,
INFLATION,
INFLATION RATE,
INSTITUTIONAL DEVELOPMENT,
INSTITUTIONAL ENVIRONMENT,
INSURANCE,
INSURANCE POLICIES,
INTEREST RATE,
INTEREST RATES,
INVESTOR PROTECTION,
LAWS,
MAXIMUM LIKELIHOOD ESTIMATION,
MORAL HAZARD,
OLIGOPOLY,
OWNERSHIP STRUCTURE,
PERFECT COMPETITION,
PREDICTIONS,
REAL ESTATE,
REAL GDP,
REGULATORY FRAMEWORK,
REGULATORY REGIMES,
RELATIONSHIP LENDING,
RESOURCE ALLOCATION,
SAVINGS,
SECURITIES,
SMALL BUSINESS,
STOCK MARKETS,
SUBSIDIARIES,
SUPERVISORY AUTHORITIES,
TRANSITION ECONOMIES,
ACCESS TO CREDIT, |
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| Online Access: | http://documents.worldbank.org/curated/en/2003/03/2183609/bank-competition-financing-obstacles-access-credit
https://hdl.handle.net/10986/19161
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