EconPapers    
Economics at your fingertips  
 

Move a Little Closer? Information Sharing and the Spatial Clustering of Bank Branches

Steven Ongena, Shusen Qi, Ralph De Haas, Stefan Straetmans and Tamas Vadasz

No 15829, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We present a model of credit market competition to derive key hypotheses about how information sharing between banks influences the spatial clustering of their branches. We then test these hypotheses using data on 56,555 branches owned by 614 banks across 19 countries. We find that information sharing incentivizes banks to establish branches in localities that are new to them but that are already served by other banks. The resultant branch clustering is associated with reduced spatial credit rationing, as information sharing enables firms to access credit from more distant banks. These findings underscore how information sharing makes it more important for banks to move closer to each other rather than closer to their borrowers.

Keywords: Branch clustering; Information sharing; Spatial oligopoly model (search for similar items in EconPapers)
JEL-codes: D43 G21 G28 L13 R51 (search for similar items in EconPapers)
Date: 2021-02
New Economics Papers: this item is included in nep-ban, nep-com and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP15829 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Move a Little Closer? Information Sharing and the Spatial Clustering of Bank Branches (2023) Downloads
Working Paper: Move a Little Closer? Information Sharing and the Spatial Clustering of Bank Branches (2019) Downloads
Working Paper: Move a Little Closer? Information Sharing and the Spatial Clustering of Bank Branches (2018) Downloads
Working Paper: Move a Little Closer? Information Sharing and the Spatial Clustering of Bank Branches (2018) Downloads
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:cpr:ceprdp:15829

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP15829

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2024-06-08
Handle: RePEc:cpr:ceprdp:15829