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Bank market power and SME finance: firm-bank evidence from European countries

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Bank market power and SME finance : firm-bank evidence from European countries. / Wang, Xiaodong; Han, Liang; Huang, Xing.

In: Journal of International Financial Markets, Institutions and Money, Vol. 64, 101162, 01.01.2020, p. 1-26.

Research output: Contribution to journalArticlepeer-review

Harvard

Wang, X, Han, L & Huang, X 2020, 'Bank market power and SME finance: firm-bank evidence from European countries', Journal of International Financial Markets, Institutions and Money, vol. 64, 101162, pp. 1-26. https://doi.org/10.1016/j.intfin.2019.101162

APA

Wang, X., Han, L., & Huang, X. (2020). Bank market power and SME finance: firm-bank evidence from European countries. Journal of International Financial Markets, Institutions and Money, 64, 1-26. [101162]. https://doi.org/10.1016/j.intfin.2019.101162

Vancouver

Wang X, Han L, Huang X. Bank market power and SME finance: firm-bank evidence from European countries. Journal of International Financial Markets, Institutions and Money. 2020 Jan 1;64:1-26. 101162. https://doi.org/10.1016/j.intfin.2019.101162

Author

Wang, Xiaodong ; Han, Liang ; Huang, Xing. / Bank market power and SME finance : firm-bank evidence from European countries. In: Journal of International Financial Markets, Institutions and Money. 2020 ; Vol. 64. pp. 1-26.

Bibtex

@article{ea2830b557904f64a20728d74c047aef,
title = "Bank market power and SME finance: firm-bank evidence from European countries",
abstract = "Using unique matched data on SME-bank relationships from 19 European countries, we examine the effects of bank-level market power on SME finance. We show novel evidence that bank market power at disaggregate level reduces SMEs{\textquoteright} access to bank finance and worsens their credit constraints. Whilst, banking market concentration improves credit supply to SMEs. The unfavourable market power effect is stronger for SMEs who are more informationally opaque, riskier and more dependent on external finance. We also show supporting evidence on Information-based Hypothesis where with greater market power, banks are more likely to engage in relationship lending.",
keywords = "Bank relationship, Financing constraint, Market power, SME",
author = "Xiaodong Wang and Liang Han and Xing Huang",
note = "Elsevier 12 months embargo.",
year = "2020",
month = jan,
day = "1",
doi = "10.1016/j.intfin.2019.101162",
language = "English",
volume = "64",
pages = "1--26",
journal = "Journal of International Financial Markets, Institutions and Money",
issn = "1042-4431",
publisher = "Elsevier BV",

}

RIS

TY - JOUR

T1 - Bank market power and SME finance

T2 - firm-bank evidence from European countries

AU - Wang, Xiaodong

AU - Han, Liang

AU - Huang, Xing

N1 - Elsevier 12 months embargo.

PY - 2020/1/1

Y1 - 2020/1/1

N2 - Using unique matched data on SME-bank relationships from 19 European countries, we examine the effects of bank-level market power on SME finance. We show novel evidence that bank market power at disaggregate level reduces SMEs’ access to bank finance and worsens their credit constraints. Whilst, banking market concentration improves credit supply to SMEs. The unfavourable market power effect is stronger for SMEs who are more informationally opaque, riskier and more dependent on external finance. We also show supporting evidence on Information-based Hypothesis where with greater market power, banks are more likely to engage in relationship lending.

AB - Using unique matched data on SME-bank relationships from 19 European countries, we examine the effects of bank-level market power on SME finance. We show novel evidence that bank market power at disaggregate level reduces SMEs’ access to bank finance and worsens their credit constraints. Whilst, banking market concentration improves credit supply to SMEs. The unfavourable market power effect is stronger for SMEs who are more informationally opaque, riskier and more dependent on external finance. We also show supporting evidence on Information-based Hypothesis where with greater market power, banks are more likely to engage in relationship lending.

KW - Bank relationship

KW - Financing constraint

KW - Market power

KW - SME

UR - http://www.scopus.com/inward/record.url?scp=85077370436&partnerID=8YFLogxK

U2 - 10.1016/j.intfin.2019.101162

DO - 10.1016/j.intfin.2019.101162

M3 - Article

AN - SCOPUS:85077370436

VL - 64

SP - 1

EP - 26

JO - Journal of International Financial Markets, Institutions and Money

JF - Journal of International Financial Markets, Institutions and Money

SN - 1042-4431

M1 - 101162

ER -

ID: 18002752