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Global Banking and Local Markets

Author

Listed:
  • Pietro Alessandrini

    () (Universit… Politecnica delle Marche, MoFiR)

  • Andrea Filippo Presbitero

    () (Universit… Politecnica delle Marche, MoFiR)

  • Alberto Zazzaro

    () (Universit… Politecnica delle Marche, MoFiR)

Abstract

In the early 1990s, a widely-shared opinion among scholars and practitioners was that the importance of physical proximity between banks and borrowers would be doomed to drastically decrease over time and, put in extreme terms, the end of banking geography would become a real possibility. However, the empirical evidence show an unrelenting importance of local credit markets for small borrowers and local economic development. In the paper, we selectively review the literature on the real effects of bank consolidation and produce new evidence on the role of headquarter-to-branch functional distance on relationship lending.

Suggested Citation

  • Pietro Alessandrini & Andrea Filippo Presbitero & Alberto Zazzaro, 2008. "Global Banking and Local Markets," Mo.Fi.R. Working Papers 4, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  • Handle: RePEc:anc:wmofir:4
    as

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    File URL: http://docs.dises.univpm.it/web/quaderni/pdfmofir/Mofir004.pdf
    File Function: First version, 2008
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    References listed on IDEAS

    as
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    Cited by:

    1. Luca Papi & Emma Sarno & Alberto Zazzaro, 2017. "The geographical network of bank organizations: issues and evidence for Italy," Chapters,in: Handbook on the Geographies of Money and Finance, chapter 8, pages 156-196 Edward Elgar Publishing.
    2. Pietro Alessandrini & Andrea Filippo Presbitero, 2009. "La Nuova Geografia Bancaria nel Mezzogiorno: la Necessita' di un Approccio Sistemico," Mo.Fi.R. Working Papers 10, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    3. Giulio Cainelli & Sandro Montresor & Giuseppe Vittucci Marzetti, 2012. "Production and financial linkages in inter-firm networks: structural variety, risk-sharing and resilience," Journal of Evolutionary Economics, Springer, vol. 22(4), pages 711-734, September.

    More about this item

    Keywords

    Functinal distance; Global banking development; Local banking;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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