Bank Size and Small- and Medium-sized Enterprise (SME) Lending: Evidence from China
Summary Using panel data collected in 2005, we evaluate how bank size, discretion over credit, incentive schemes, competition, and the institutional environment affect lending to small- and medium-sized enterprises in China. We deal with the endogeneity problem using instrumental variables, and a reduced-form approach is also applied to allow for weak instruments in estimation. We find that total bank asset is an insignificant factor for banks' decision on small- and medium-enterprise (SME) lending, but more local lending authority, more competition, carefully designed incentive schemes, and stronger law enforcement encourage commercial banks to lend to SMEs.
Year of publication: |
2009
|
---|---|
Authors: | Shen, Yan ; Shen, Minggao ; Xu, Zhong ; Bai, Ying |
Published in: |
World Development. - Elsevier, ISSN 0305-750X. - Vol. 37.2009, 4, p. 800-811
|
Publisher: |
Elsevier |
Keywords: | SME lending bank size loan approval rights reduced-form approach soft information |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Bank size and small- and medium-sized enterprise (SME) lending : evidence from China
Shen, Yan, (2009)
-
Bank Size and Small- and Medium-sized Enterprise (SME) Lending: Evidence from China
Shen, Yan, (2009)
-
Bank Size and Small- and Medium-sized Enterprise (SME) Lending: Evidence from China
Shen, Yan, (2009)
- More ...