, to guarantee macro and financial stability, it is important to understand whether, and to what extent, banks are affected …

potential entrant. Our econometric findings show that, all else being equal, banks are more likely to expand into those markets … that are closest to their pre-entry locations. We also find that large banks are more able to cope with distance …-related entry costs than small banks. Finally, we show that banks have become increasingly able to open branches in distant markets …

would-be borrowers who were previously rejected by mature banks in the market. Second, since a substantial amount of the … information used by banks to screen loan applicants and monitor borrowers is generated through repeated interaction with their … these endogenous barriers can help to explain why in many local credit markets by domestic and foreign banks was slow, even …