The Economic Impact of Changes in the Local Bank Presence

45 Pages Posted: 11 Jan 2017

See all articles by Iftekhar Hasan

Iftekhar Hasan

Fordham University - Gabelli School of Business; Bank of Finland

Krzysztof Jackowicz

Kozminski University

Oskar Kowalewski

IESEG School of Management; LEM - CNRS 9221

Łukasz Kozłowski

Kozminski University

Date Written: January 10, 2017

Abstract

The study analyses the economic consequences of changes in the local bank presence. Using a unique dataset of banks, firms, and counties in Poland over the period 2009-2014, we show that changes in local banking that increase the role of the relationship banking model are associated with improvements in local labour markets and easier access of SMEs to bank debt. Moreover, radical changes in the ownership structure of large commercial banks result in a more rapid new firm creation. Finally, we document that young companies’ performance is more sensitive to the instability of local banking markets.

Keywords: Local Economic Activity, SMEs, Entrepreneurship, Local Banks

JEL Classification: G21, G32, R11

Suggested Citation

Hasan, Iftekhar and Jackowicz, Krzysztof and Kowalewski, Oskar and Kozłowski, Łukasz, The Economic Impact of Changes in the Local Bank Presence (January 10, 2017). IESEG Working Paper Series 2017-ACF-01; Gabelli School of Business, Fordham University Research Paper No. 2896874. Available at SSRN: https://ssrn.com/abstract=2896874 or http://dx.doi.org/10.2139/ssrn.2896874

Iftekhar Hasan

Fordham University - Gabelli School of Business ( email )

Rose Hill Campus Bronx
New York, NY 10458
United States

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

Krzysztof Jackowicz

Kozminski University ( email )

ul. JagielloDska 57/59
Warsaw, 03-303
Poland

Oskar Kowalewski (Contact Author)

IESEG School of Management ( email )

1 Parvis de La Défense
Socle de la Grande Arche
Paris La Défense cedex, 92044
France

HOME PAGE: http://www.ieseg.fr/en/faculty-and-research/professor/?id=1740

LEM - CNRS 9221 ( email )

Lille
France

HOME PAGE: http://lem.cnrs.fr/

Łukasz Kozłowski

Kozminski University ( email )

ul. Jagiellońska 57/59
Warsaw, Mazowieckie 03-301
Poland

HOME PAGE: http://www.kozminski.edu.pl

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