Bank Competition and Access to Finance
نویسندگان
چکیده
Theory makes ambiguous predictions about the effects of bank market structure on access to external finance. Using a unique database for 74 countries and for firms of small, medium and large size we assess the effect of banking market structure on the access of firms to bank finance. We find that bank concentration increases financing obstacles, but only in countries with low levels of economic and institutional development. A larger share of foreign-owned banks dampens the effect of concentration on financing obstacles, while the effect is exacerbated by more restrictions on banks’ activities, more government interference in the banking sector, and a larger share of government-owned banks.
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