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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
      
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Do local banking market structures matter for SME financing and performance? New evidence from an emerging economy, Journal of Banking and Finance June (2017). Hasan, Iftekhar; Jackowicz, Krzysztof; Kowalewski, Oskar; Kozłowski, Łukasz


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Hasan, Iftekhar; Jackowicz, Krzysztof; Kowalewski, Oskar; Kozłowski, Łukasz 
Number of authors
Status Published
Year of publication 2017 
Date 20.03.2017 
Name of article Do local banking market structures matter for SME financing and performance? New evidence from an emerging economy 
Name of journal Journal of Banking and Finance
Volume of issue 79 
Number of issue June 
Pages 142–158 
Abstract This paper investigates the relationship between local banking structures and SMEs’ access to debt and performance. Using a unique dataset on bank branch locations in Poland and firm-, county-, and bank-level data, we conclude that a strong position for local cooperative banks facilitates access to bank financing, lowers financial costs, boosts investments, and favours growth for SMEs. Moreover, counties in which cooperative banks hold a strong position are characterized by a more rapid pace of new firm creation. The opposite effects appear in the majority of cases for local banking markets dominated by foreign-owned banks. Consequently, our findings are important from a policy perspective because they show that foreign bank entry and industry consolidation may raise valid concerns for SME prospects in emerging economies.
Free text descriptor in Finnish pienyritykset; pkt; yritykset; osuuspankit; ulkomaiset pankit; pankkitoiminta; luotonanto; luotot; rahoitus; siirtymätaloudet 
Free text descriptor in English Small-business lending; Cooperative banks; Foreign banks; Post-transition countries 
JEL-codes G21; G28 
ISSN / e-ISSN 0378-4266 
auki Internet addresses
Additional information Available online 20 March 2017.
Notes BoF DP 22/2014 


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