Bank size and lending specialization

Diana Bonfim and Qinglei Dai

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: Using micro-level data on the entire population of business loans of a bank-based economy, we empirically test some of the core predictions of the SME financing literature, examining banks’ lending specializations in firm size and lending technologies. Rejecting the conventional belief that smaller banks focus more on relationship loans than do larger banks, we find that banks of different sizes dedicate similar proportions of loans to relationship lending. However, supporting the SME finance theories on the organizational advantages of small banks, we find that smaller banks provide more access to relationship loans to small firms, though such loans are usually more expensive.

JEL-codes: G21 G30 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-ban and nep-cfn
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Citations: View citations in EconPapers (7)

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Journal Article: Bank Size and Lending Specialisation (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ptu:wpaper:w201219

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