Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212280
Authors: 
Hasan, Iftekhar
Molyneux, Phil
Xie, Ru
Hakenes, Hendrik
Year of Publication: 
2014
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 5/2014
Abstract: 
This paper discusses the effects of small banks on economic growth. We first theoretically show that small banks operating at a regional level can spur local economic growth. As compared with big interregional banks, small regional banks are more effective in promoting local economic growth, especially in regions with lower initial endowments and severe credit rationing. We then test the model predictions using a sample of German banks and corresponding regional statistics. We find that small regional banks are more important funding providers in regions with low access to finance. The empirical results support the theoretical hypotheses.
Subjects: 
small banks
regional economic growth
JEL: 
G21
O16
R11
Persistent Identifier of the first edition: 
ISBN: 
978-952-6699-69-1
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.