Does Banking Diversity Matter for Credit Access? Evidence on SMES in Europe

Francesco Trivieri

Kyklos, 2026, vol. 79, issue 2, 478-499

Abstract: This paper investigates SMEs' access to credit from the perspective of the biodiversity argument in banking, a conceptual framework that has been largely overlooked in the literature. Using bank‐ and firm‐level data for eight European countries from 2014 to 2022, I empirically assess the role of bank diversity—measured by the Gini‐Simpson index, in analogy with ecological diversity—on the probability of SMEs being credit rationed. My results indicate that institutional heterogeneity within the banking sector mitigates credit constraints faced by SMEs while also increasing firms' propensity to apply for bank loans. These findings align with the core tenet of the biodiversity approach, which posits that a banking landscape marked by a plurality of institutional forms represents a valuable asset for financing the real economy. In light of my evidence, preserving and fostering institutional diversity within the banking sector should be regarded as a policy priority.

Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/kykl.70043

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:kyklos:v:79:y:2026:i:2:p:478-499

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0023-5962

Access Statistics for this article

Kyklos is currently edited by Rene L. Frey

More articles in Kyklos from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().