Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/210946
Authors: 
Gustafsson, Anders
Manduchi, Agostino
Stephan, Andreas
Year of Publication: 
2019
Series/Report no.: 
IFN Working Paper 1305
Abstract: 
In the past few decades, commercial banks have substantially reduced the number of their branch offices. We address the question of whether or not the increased distance from the lenders correspondingly faced by many small and medium sized enterprises (SMEs) translates into a lower volume of loans. We use a unique dataset on loans from a state owned Swedish bank designed to support credit-constrained SMEs and interact their loan portfolio with the number of nearby commercial bank offices at the firm level along with an IV strategy to account for endogeneity. The estimation results strongly indicate that a larger number of local bank offices increases the local credit supply, and decreases the credit constraints of nearby SMEs.
Subjects: 
Credit constraints
Relationship banking
State owned bank
Small business
JEL: 
L52
O38
H81
L26
G28
Document Type: 
Working Paper

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