Hakenes, Hendrik; Hasan, Iftekhar; Molyneux, Phil; Xie, Ru - Suomen Pankki - 2014
This paper discusses the effects of small banks on economic growth. We first theoretically show that small banks … operating at a regional level can spur local economic growth. As compared with big interregional banks, small regional banks are … rationing. We then test the model predictions using a sample of German banks and corresponding regional statistics. We find that …