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Bank Financing for SMEs : Evidence Across Countries and Bank-Ownership Types

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  • Beck, T.H.L.

    (Tilburg University, Center For Economic Research)

  • Demirgüc-Kunt, A.
  • Martinez Peria, M.

Abstract

Using data for 91 large banks from 45 countries, this paper finds few differences in the extent, type, and pricing of SME loans across foreign, private, and government-owned banks, even though different bank ownership types apply different lending technologies and have different organizational structures. Instead, we find significant differences across banks in developed and developing countries, driven by differences in the economic, institutional, and legal environment, as opposed to by differences in lending technologies and organizational structures. Finally, the link between lending technologies, organizational structures, and SME financing is not consistent with the conventional view that SME lending is based on “relationship lending”.
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Suggested Citation

  • Beck, T.H.L. & Demirgüc-Kunt, A. & Martinez Peria, M., 2009. "Bank Financing for SMEs : Evidence Across Countries and Bank-Ownership Types," Discussion Paper 2009-71, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:582929e2-f3e4-47f1-8cfe-59dfebbaf790
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    References listed on IDEAS

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    More about this item

    Keywords

    Small and Medium Enterprises; Bank Ownership; Lending Technology; Access to Finance;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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