Global Banking and Local Markets

Pietro Alessandrini (), Andrea Filippo Presbitero () and Alberto Zazzaro ()

No 4, Mo.Fi.R. Working Papers from Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economics

Abstract: In the early 1990s, a widely-shared opinion among scholars and practitioners was that the importance of physical proximity between banks and borrowers would be doomed to drastically decrease over time and, put in extreme terms, the end of banking geography would become a real possibility. However, the empirical evidence show an unrelenting importance of local credit markets for small borrowers and local economic development. In the paper, we selectively review the literature on the real effects of bank consolidation and produce new evidence on the role of headquarter-to-branch functional distance on relationship lending.

Keywords: Functinal distance; Global banking development; Local banking (search for similar items in EconPapers)
JEL-codes: G21 G34 R12 R51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-geo and nep-ure
Date: 2008-10

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Persistent link: http://EconPapers.repec.org/RePEc:anc:wmofir:4

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