IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v24y2005i5p477-485.html
   My bibliography  Save this article

Competition and the Provision of Banking Services to SMEs in the U.K

Author

Listed:
  • John Ashton
  • Kevin Keasey

Abstract

This paper examines the report produced by the Competition Commission on the provision of SME banking services in the U.K. The report is assessed in terms of underlying assumptions used to describe and assess how banks operate and perform. The Competition Commission suggested “remedies” are drawn from a specific economic model assumed to be representative of the U.K. banking industry. It is concluded the remedies proposed by the Competition Commission are misplaced and may impose a substantial future cost on both banks and SMEs receiving banking services. It is proposed that the ramifications of this case are substantial for the present system of allocating bank funding to SMEs, in both the U.K. and international economies where similar antitrust or competition guidelines are employed. Copyright Springer 2005

Suggested Citation

  • John Ashton & Kevin Keasey, 2005. "Competition and the Provision of Banking Services to SMEs in the U.K," Small Business Economics, Springer, vol. 24(5), pages 477-485, June.
    • Handle: RePEc:kap:sbusec:v:24:y:2005:i:5:p:477-485
    DOI: 10.1007/s11187-005-6447-x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11187-005-6447-x
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11187-005-6447-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Berlin, Mitchell & Mester, Loretta J, 1999. "Deposits and Relationship Lending," The Review of Financial Studies, Society for Financial Studies, vol. 12(3), pages 579-607.
    2. repec:zbw:bofism:1995_002 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anoosheh Rostamkalaei & Mark Freel, 2016. "The cost of growth: small firms and the pricing of bank loans," Small Business Economics, Springer, vol. 46(2), pages 255-272, February.
    2. John K. Ashton & Andrew D. Pressey, 2007. "The Regulatory Perception of the Marketing Function: an Interpretation of UK Competition Authority Investigations 1950-2005," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2007-, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    3. John K. Ashton & Andrew D. Pressey, 2009. "The Regulatory Challenge to Branding: An Interpretation of UK Competition Authority Investigations 1950-2007," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2009-02, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    4. Zambaldi, Felipe & Aranha, Francisco & Lopes, Hedibert & Politi, Ricardo, 2011. "Credit granting to small firms: A Brazilian case," Journal of Business Research, Elsevier, vol. 64(3), pages 309-315, March.
    5. Hua Song & Lan Wang, 2013. "The impact of private and family firms’ relational strength on financing performance in clusters," Asia Pacific Journal of Management, Springer, vol. 30(3), pages 735-748, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brei, Michael & Gambacorta, Leonardo & von Peter, Goetz, 2013. "Rescue packages and bank lending," Journal of Banking & Finance, Elsevier, vol. 37(2), pages 490-505.
    2. Enzo Dia, 2004. "Monopolistic Pricing in the Banking Industry: a Dynamic Portfolio Model," Finance 0411025, University Library of Munich, Germany.
    3. Diego A. Restrepo-Tobón & Subal C. Kumbhakar, 2013. "Profit efficiency of U.S. commercial banks: a decomposition," Documentos de Trabajo CIEF 10939, Universidad EAFIT.
    4. Burghof, Hans-Peter & Henschel, Claudia, 1998. "Credit information in universal banking: A clinical study," CFS Working Paper Series 1998/13, Center for Financial Studies (CFS).
    5. Choudhary, M. Ali & Jain, Anil, 2022. "Finance and inequality: The distributional impacts of bank credit rationing," Journal of Financial Intermediation, Elsevier, vol. 52(C).
    6. Inoue, Hitoshi & Nakashima, Kiyotaka & Takahashi, Koji, 2016. "Comment on Peek and Rosengren (2005) “Unnatural Selection: Perverse Incentives and the Allocation of Credit in Japan”," MPRA Paper 72726, University Library of Munich, Germany.
    7. Dong Beom Choi & Hyun-Soo Choi, 2021. "The Effect of Monetary Policy on Bank Wholesale Funding," Management Science, INFORMS, vol. 67(1), pages 388-416, January.
    8. Martins, António Miguel & Serra, Ana Paula & Stevenson, Simon, 2019. "Determinants of real estate bank profitability," Research in International Business and Finance, Elsevier, vol. 49(C), pages 282-300.
    9. Joseph P. Hughes & Loretta J. Mester, 2008. "Efficiency in banking: theory, practice, and evidence," Working Papers 08-1, Federal Reserve Bank of Philadelphia.
    10. González, Francisco, 2016. "Creditor rights, bank competition, and corporate investment during the global financial crisis," Journal of Corporate Finance, Elsevier, vol. 37(C), pages 249-270.
    11. Bing Xu & Honglin Wang & Adrian Van Rixtel, 2015. "Do banks extract informational rents through collateral?," BIS Working Papers 522, Bank for International Settlements.
    12. Loretta J. Mester & Leonard I. Nakamura & Micheline Renault, 2007. "Transactions Accounts and Loan Monitoring," The Review of Financial Studies, Society for Financial Studies, vol. 20(3), pages 529-556.
    13. Bharath, Sreedhar & Dahiya, Sandeep & Saunders, Anthony & Srinivasan, Anand, 2007. "So what do I get? The bank's view of lending relationships," Journal of Financial Economics, Elsevier, vol. 85(2), pages 368-419, August.
    14. Mark Egan & Stefan Lewellen & Adi Sunderam, 2017. "The Cross Section of Bank Value," NBER Working Papers 23291, National Bureau of Economic Research, Inc.
    15. Patrick Bolton & Xavier Freixas & Leonardo Gambacorta & Paolo Emilio Mistrulli, 2016. "Relationship and Transaction Lending in a Crisis," Review of Financial Studies, Society for Financial Studies, vol. 29(10), pages 2643-2676.
    16. Bill Francis & Iftekhar Hasan & Dona Siregar, 2009. "The choice of IPO versus M&A: evidence from banking industry," Applied Financial Economics, Taylor & Francis Journals, vol. 19(24), pages 1987-2007.
    17. Saeyeon Oh & Jungsoo Park, 2015. "Does Bank Branch Competition Alleviate Household Credit Constraints?Evidence from Korean Household Data," Working Papers 1501, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    18. Evan Gatev & Til Schuermann & Philip E. Strahan, 2009. "Managing Bank Liquidity Risk: How Deposit-Loan Synergies Vary with Market Conditions," The Review of Financial Studies, Society for Financial Studies, vol. 22(3), pages 995-1020.
    19. Chloé Zapha & Banque de France, 2023. "Access to Credit after Emerging from Corporate Bankruptcy," Working Papers halshs-03957890, HAL.
    20. Tschoegl, Adrian E., 2004. "Who owns the major US subsidiaries of foreign banks?: A note," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 14(3), pages 255-266, July.

    More about this item

    Statistics

    Access and download statistics

    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:kap:sbusec:v:24:y:2005:i:5:p:477-485. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.