Abstract

http://ssrn.com/abstract=1759864
 


 



Does Banking Competition Alleviate or Worsen Credit Constraints Faced by Small- and Medium-Sized Enterprises? Evidence from China


Terence T. L. Chong


Institute of Global Economics and Finance

Liping Lu


VU University Amsterdam

Steven Ongena


University of Zurich and SFI

April 4, 2013

European Banking Center Discussion Paper No. 2012-007

Abstract:     
Banking competition may enhance or hinder the financing of small and medium-sized enterprises. Using a survey on the financing of such enterprises in China, combined with detailed bank branch information, we investigate how concentration in local banking market affects the availability of credit. We find that lower market concentration alleviates financing constraints. The widespread presence of joint-stock banks has a larger effect on alleviating these constraints, than the presence of city commercial banks, while the presence of state-owned banks has a smaller effect.

Number of Pages in PDF File: 51

Keywords: Banking Competition, SMEs Financing, Credit Constraints

JEL Classification: D41, D43, G21

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Date posted: February 13, 2011 ; Last revised: April 7, 2013

Suggested Citation

Chong, Terence T. L. and Lu, Liping and Ongena, Steven, Does Banking Competition Alleviate or Worsen Credit Constraints Faced by Small- and Medium-Sized Enterprises? Evidence from China (April 4, 2013). European Banking Center Discussion Paper No. 2012-007. Available at SSRN: http://ssrn.com/abstract=1759864 or http://dx.doi.org/10.2139/ssrn.1759864

Contact Information

Terence Tai Leung Chong
Institute of Global Economics and Finance ( email )
13 floor, Cheng Yu Tung Building
12 Chak Cheung Street
Hong Kong
Hong Kong
Liping Lu (Contact Author)
VU University Amsterdam
De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands
Steven R. G. Ongena
University of Zurich and SFI ( email )
Plattenstrasse 14
Zürich, 8032
Switzerland
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