How Bank Competition Affects Firms' Access to Finance
Combining multi-year, firm-level surveys with country-level panel data for 53 countries, the authors explore the impact of bank competition on firms' access to finance. They find that low competition, as measured by high values of the Lerner i...
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World Bank, Washington, DC
2012
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Online Access: | http://documents.worldbank.org/curated/en/2012/08/16592677/bank-competition-affects-firms-access-finance http://hdl.handle.net/10986/12010 |
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okr-10986-120102021-04-23T14:02:58Z How Bank Competition Affects Firms' Access to Finance Love, Inessa Martínez Peria, María Soledad ACCESS TO BANK ACCESS TO CREDIT ACCESS TO FINANCE ACCESSIBILITY ACCOUNTS RECEIVABLE ADVERSE SELECTION AVAILABILITY OF CREDIT AVAILABILITY OF FINANCE BAILOUTS BALANCE SHEET BANK ASSETS BANK BRANCH BANK COMPETITION BANK ENTRY BANK HOLDING BANK HOLDING COMPANIES BANK LOAN BANK MARKET BANK MERGERS BANK POLICY BANK REGULATION BANKING INDUSTRY BANKING MARKET BANKING MARKETS BANKING SECTOR BANKING SECTORS BANKING SYSTEM BANKING SYSTEMS BANKS BORROWING CENTRAL BANKS CHECKS COLLATERAL COMPETITIVENESS CONSOLIDATION CONSUMER PROTECTION CONTRACT ENFORCEMENT COUNTRY COMPARISONS CREDIT BUREAU CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT INFORMATION CREDIT MARKET CREDIT MARKETS CREDIT PRODUCTS CREDIT REGISTRIES CREDIT REGISTRY CULTURAL BIASES DEBT DENIAL RATES DEPOSIT DEPOSITS DEREGULATION DERIVATIVE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC CREDIT DUMMY VARIABLE DUMMY VARIABLES ECONOMIC GROWTH ELASTICITY EMERGING MARKETS EMPIRICAL EVIDENCE EMPIRICAL STUDIES ENVIRONMENTS EXPORTER EXPORTERS EXTERNAL DEBT FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL ACCESS FINANCIAL COSTS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTION FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL PRODUCT FINANCIAL REFORM FINANCIAL SERVICES FINANCIAL STUDIES FINANCIAL SYSTEM FINANCING OBSTACLES FOREIGN FIRMS FUTURE RESEARCH GDP GDP DEFLATOR GOVERNMENT BANK GOVERNMENT BANKS GOVERNMENT OWNERSHIP GREATER CREDIT AVAILABILITY GROSS REVENUE GROWTH RATE INDUSTRIAL ECONOMICS INFLATION INFLATION RATE INFORMATION ASYMMETRIES INPUT PRICES INTANGIBLE INTANGIBLE ASSETS INTEREST RATES INTERNATIONAL BANK INVENTORY INVESTING INVESTMENT BANKS LACK OF COMPETITION LENDER LENDING INSTITUTIONS LINE OF CREDIT LINES OF CREDIT LOAN LOAN APPLICATION LOAN CONTRACTS LOAN MARKETS LOAN PRICES LOCAL BANKS MARGINAL COST MARGINAL COSTS MARKET COMPETITION MARKET MECHANISMS MARKET POWER MARKET SHARE MARKET STRUCTURE MONOPOLY MORTGAGE MORTGAGE MARKET MORTGAGE MARKETS OVERDRAFT OVERDRAFT FACILITY OVERDRAFTS OWNERSHIP STRUCTURE PERSONAL ASSETS PERSONNEL EXPENSES PRIVATE CREDIT PRIVATE CREDIT BUREAU PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PUBLIC CREDIT RETAIL ENTERPRISES SAVINGS SHARE OF ASSETS SMALL BUSINESS SMALL BUSINESS CREDIT SMALL BUSINESS LENDING TOTAL OUTPUT UNIVERSAL BANKING VALUE OF COLLATERAL Combining multi-year, firm-level surveys with country-level panel data for 53 countries, the authors explore the impact of bank competition on firms' access to finance. They find that low competition, as measured by high values of the Lerner index, diminishes firms' access to finance, while commonly-used bank concentration measures are not robust predictors of firms' access to finance. In addition, they find that the impact of competition on access to finance depends on the environment that banks operate in. Some features of the environment, such as greater financial development and better credit information, can mitigate the damaging impact of low competition. But other characteristics, such as high government bank ownership, can exacerbate the negative effect. 2012-12-21T20:15:20Z 2012-12-21T20:15:20Z 2012-08 http://documents.worldbank.org/curated/en/2012/08/16592677/bank-competition-affects-firms-access-finance http://hdl.handle.net/10986/12010 English en_US Policy Research Working Paper;6163 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
repository_type |
Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English en_US |
topic |
ACCESS TO BANK ACCESS TO CREDIT ACCESS TO FINANCE ACCESSIBILITY ACCOUNTS RECEIVABLE ADVERSE SELECTION AVAILABILITY OF CREDIT AVAILABILITY OF FINANCE BAILOUTS BALANCE SHEET BANK ASSETS BANK BRANCH BANK COMPETITION BANK ENTRY BANK HOLDING BANK HOLDING COMPANIES BANK LOAN BANK MARKET BANK MERGERS BANK POLICY BANK REGULATION BANKING INDUSTRY BANKING MARKET BANKING MARKETS BANKING SECTOR BANKING SECTORS BANKING SYSTEM BANKING SYSTEMS BANKS BORROWING CENTRAL BANKS CHECKS COLLATERAL COMPETITIVENESS CONSOLIDATION CONSUMER PROTECTION CONTRACT ENFORCEMENT COUNTRY COMPARISONS CREDIT BUREAU CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT INFORMATION CREDIT MARKET CREDIT MARKETS CREDIT PRODUCTS CREDIT REGISTRIES CREDIT REGISTRY CULTURAL BIASES DEBT DENIAL RATES DEPOSIT DEPOSITS DEREGULATION DERIVATIVE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC CREDIT DUMMY VARIABLE DUMMY VARIABLES ECONOMIC GROWTH ELASTICITY EMERGING MARKETS EMPIRICAL EVIDENCE EMPIRICAL STUDIES ENVIRONMENTS EXPORTER EXPORTERS EXTERNAL DEBT FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL ACCESS FINANCIAL COSTS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTION FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL PRODUCT FINANCIAL REFORM FINANCIAL SERVICES FINANCIAL STUDIES FINANCIAL SYSTEM FINANCING OBSTACLES FOREIGN FIRMS FUTURE RESEARCH GDP GDP DEFLATOR GOVERNMENT BANK GOVERNMENT BANKS GOVERNMENT OWNERSHIP GREATER CREDIT AVAILABILITY GROSS REVENUE GROWTH RATE INDUSTRIAL ECONOMICS INFLATION INFLATION RATE INFORMATION ASYMMETRIES INPUT PRICES INTANGIBLE INTANGIBLE ASSETS INTEREST RATES INTERNATIONAL BANK INVENTORY INVESTING INVESTMENT BANKS LACK OF COMPETITION LENDER LENDING INSTITUTIONS LINE OF CREDIT LINES OF CREDIT LOAN LOAN APPLICATION LOAN CONTRACTS LOAN MARKETS LOAN PRICES LOCAL BANKS MARGINAL COST MARGINAL COSTS MARKET COMPETITION MARKET MECHANISMS MARKET POWER MARKET SHARE MARKET STRUCTURE MONOPOLY MORTGAGE MORTGAGE MARKET MORTGAGE MARKETS OVERDRAFT OVERDRAFT FACILITY OVERDRAFTS OWNERSHIP STRUCTURE PERSONAL ASSETS PERSONNEL EXPENSES PRIVATE CREDIT PRIVATE CREDIT BUREAU PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PUBLIC CREDIT RETAIL ENTERPRISES SAVINGS SHARE OF ASSETS SMALL BUSINESS SMALL BUSINESS CREDIT SMALL BUSINESS LENDING TOTAL OUTPUT UNIVERSAL BANKING VALUE OF COLLATERAL |
spellingShingle |
ACCESS TO BANK ACCESS TO CREDIT ACCESS TO FINANCE ACCESSIBILITY ACCOUNTS RECEIVABLE ADVERSE SELECTION AVAILABILITY OF CREDIT AVAILABILITY OF FINANCE BAILOUTS BALANCE SHEET BANK ASSETS BANK BRANCH BANK COMPETITION BANK ENTRY BANK HOLDING BANK HOLDING COMPANIES BANK LOAN BANK MARKET BANK MERGERS BANK POLICY BANK REGULATION BANKING INDUSTRY BANKING MARKET BANKING MARKETS BANKING SECTOR BANKING SECTORS BANKING SYSTEM BANKING SYSTEMS BANKS BORROWING CENTRAL BANKS CHECKS COLLATERAL COMPETITIVENESS CONSOLIDATION CONSUMER PROTECTION CONTRACT ENFORCEMENT COUNTRY COMPARISONS CREDIT BUREAU CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT INFORMATION CREDIT MARKET CREDIT MARKETS CREDIT PRODUCTS CREDIT REGISTRIES CREDIT REGISTRY CULTURAL BIASES DEBT DENIAL RATES DEPOSIT DEPOSITS DEREGULATION DERIVATIVE DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DOMESTIC CREDIT DUMMY VARIABLE DUMMY VARIABLES ECONOMIC GROWTH ELASTICITY EMERGING MARKETS EMPIRICAL EVIDENCE EMPIRICAL STUDIES ENVIRONMENTS EXPORTER EXPORTERS EXTERNAL DEBT FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL ACCESS FINANCIAL COSTS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTION FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL PRODUCT FINANCIAL REFORM FINANCIAL SERVICES FINANCIAL STUDIES FINANCIAL SYSTEM FINANCING OBSTACLES FOREIGN FIRMS FUTURE RESEARCH GDP GDP DEFLATOR GOVERNMENT BANK GOVERNMENT BANKS GOVERNMENT OWNERSHIP GREATER CREDIT AVAILABILITY GROSS REVENUE GROWTH RATE INDUSTRIAL ECONOMICS INFLATION INFLATION RATE INFORMATION ASYMMETRIES INPUT PRICES INTANGIBLE INTANGIBLE ASSETS INTEREST RATES INTERNATIONAL BANK INVENTORY INVESTING INVESTMENT BANKS LACK OF COMPETITION LENDER LENDING INSTITUTIONS LINE OF CREDIT LINES OF CREDIT LOAN LOAN APPLICATION LOAN CONTRACTS LOAN MARKETS LOAN PRICES LOCAL BANKS MARGINAL COST MARGINAL COSTS MARKET COMPETITION MARKET MECHANISMS MARKET POWER MARKET SHARE MARKET STRUCTURE MONOPOLY MORTGAGE MORTGAGE MARKET MORTGAGE MARKETS OVERDRAFT OVERDRAFT FACILITY OVERDRAFTS OWNERSHIP STRUCTURE PERSONAL ASSETS PERSONNEL EXPENSES PRIVATE CREDIT PRIVATE CREDIT BUREAU PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PUBLIC CREDIT RETAIL ENTERPRISES SAVINGS SHARE OF ASSETS SMALL BUSINESS SMALL BUSINESS CREDIT SMALL BUSINESS LENDING TOTAL OUTPUT UNIVERSAL BANKING VALUE OF COLLATERAL Love, Inessa Martínez Peria, María Soledad How Bank Competition Affects Firms' Access to Finance |
relation |
Policy Research Working Paper;6163 |
description |
Combining multi-year, firm-level surveys
with country-level panel data for 53 countries, the authors
explore the impact of bank competition on firms' access
to finance. They find that low competition, as measured by
high values of the Lerner index, diminishes firms'
access to finance, while commonly-used bank concentration
measures are not robust predictors of firms' access to
finance. In addition, they find that the impact of
competition on access to finance depends on the environment
that banks operate in. Some features of the environment,
such as greater financial development and better credit
information, can mitigate the damaging impact of low
competition. But other characteristics, such as high
government bank ownership, can exacerbate the negative effect. |
format |
Publications & Research :: Policy Research Working Paper |
author |
Love, Inessa Martínez Peria, María Soledad |
author_facet |
Love, Inessa Martínez Peria, María Soledad |
author_sort |
Love, Inessa |
title |
How Bank Competition Affects Firms' Access to Finance |
title_short |
How Bank Competition Affects Firms' Access to Finance |
title_full |
How Bank Competition Affects Firms' Access to Finance |
title_fullStr |
How Bank Competition Affects Firms' Access to Finance |
title_full_unstemmed |
How Bank Competition Affects Firms' Access to Finance |
title_sort |
how bank competition affects firms' access to finance |
publisher |
World Bank, Washington, DC |
publishDate |
2012 |
url |
http://documents.worldbank.org/curated/en/2012/08/16592677/bank-competition-affects-firms-access-finance http://hdl.handle.net/10986/12010 |
_version_ |
1764418685825449984 |