IDEAS home Printed from https://ideas.repec.org/a/ids/gbusec/v4y2002i2p277-295.html
   My bibliography  Save this article

The importance of being unimportant: small firms and small banks in Italy

Author

Listed:
  • Maria Minniti

Abstract

According to the literature on the credit channel, changes in monetary policy affect small firms by changing the costs of external financing. The literature, however, has not yet explored the relationship between the cost of available credit to different groups of borrowers and the competitiveness of the banking industry. I suggest the existence of a relationship between the cost of loans to small borrowers and the degree of concentration in the banking industry. The intuition is that if many banks compete to finance small firms, small firms have the option to switch lender. This, in turn, forces competing banks to absorb, at least in part, the shock introduced by the change in monetary policy thereby sheltering small firms from the negative asymmetric effect of monetary policy.

Suggested Citation

  • Maria Minniti, 2002. "The importance of being unimportant: small firms and small banks in Italy," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 4(2), pages 277-295.
    • Handle: RePEc:ids:gbusec:v:4:y:2002:i:2:p:277-295
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=6193
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:gbusec:v:4:y:2002:i:2:p:277-295. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=168 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.