We present evidence that government-controlled banks (GCBs) significantly increased their lending to small and medium-sized enterprises (SMEs) whose main bank was a large bank in the 2007–09 financial crisis. Further analyses show that both the weak relationship between large banks and SMEs...

We present evidence that government-controlled banks (GCBs) significantly increased their lending to small and medium-sized enterprises (SMEs) whose main bank was a large bank in the 2007-09 financial crisis. Further analyses show that both the weak relationship between large banks and SMEs and...