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Lending to Small and Medium-Sized Firms: Is There an East-West Gap in Germany?

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Author Info
Erik Lehmann
Doris Neuberger ()
Solvig R”thke

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Abstract

The financing of small and medium-sized firms is important for the catching-up of the East German to the West German economy since reunification. We explore whether it is restricted by unfavorable bank loan terms, using bank-survey data on lending decisions to small and medium- sized firms. A comparison of the terms of lending between the former East German and West German states yields a lending gap given by higher loan prices and collateral requirements in East Germany. This gap can be explained by differences in credit risks and lending strategies of banks.

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File URL: http://journals.kluweronline.com/issn/0921-898X/contents
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Publisher Info
Article provided by Springer in its journal Small Business Economics.

Volume (Year): 23 (2004)
Issue (Month): 1 (08)
Pages: 23-39
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Handle: RePEc:kap:sbusec:v:23:y:2004:i:1:p:23-39

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Web page: http://www.springerlink.com/link.asp?id=100338

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

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  1. Leo De Haan & Elmer Sterken, 2006. "The impact of monetary policy on the financing behaviour of firms in the Euro area and the UK," European Journal of Finance, Taylor and Francis Journals, vol. 12(5), pages 401-420, July. [Downloadable!] (restricted)
  2. Doris Neuberger, 2005. "What’s Common to Relationship Banking and Relationship Investing? Reflections within the Contractual Theory of the Firm," Finance 0503001, EconWPA. [Downloadable!]
  3. Elisabeth Müller & Volker Zimmermann, 2006. "The Importance of Equity Finance for R&D Activity – Are There Differences Between Young and Old Companies?," Discussion Papers 111, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
  4. Doris Neuberger & Christoph Schacht, 2005. "The Number of Bank Relationships of SMEs: A Disaggregated Analysis for the Swiss Loan Market," Finance 0509001, EconWPA. [Downloadable!]
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  5. Doris Neuberger & Christoph Schacht, 2005. "The Number of Bank Relationships of SMEs: A Disaggregated Analysis for the Swiss Loan Market," Finance 0506018, EconWPA. [Downloadable!]
  6. Mueller, Elisabeth & Zimmermann, Volker, 2006. "The Importance of Equity Finance for R&D Activity – Are There Differences Between Young and OldCompanies?," ZEW Discussion Papers 06-14, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  7. Lukas Menkhoff & Doris Neuberger & Chodechai Suwanaporn, 2005. "Collateral-Based Lending in Emerging Markets: Evidence from Thailand," Finance 0501008, EconWPA. [Downloadable!]
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  8. Jana Bruder & Doris Neuberger & Solvig Raethke-Doeppner, 2007. "Financial Constraints of Ethnic Entrepreneurship: Evidence from Germany," Thuenen-Series of Applied Economic Theory 84, University of Rostock, Institute of Economics, Germany. [Downloadable!]
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