EconPapers    
Economics at your fingertips  
 

Does Bank Branch Competition Alleviate Household Credit Constraints?Evidence from Korean Household Data

Saeyeon Oh () and Jungsoo Park ()
Additional contact information
Saeyeon Oh: Department of Economics, Sogang University, Seoul

No 1501, Working Papers from Research Institute for Market Economy, Sogang University

Abstract: This paper provides empirical evidence on how bank branch competition affects household credit constraints based on Korean household and nation-wide bank branch data. The main findings are as follow. First, regression results show that banks alleviate household credit constraint when bank branch competition is strong. Second, relaxation of credit constraint occurs at the internal margin, while external margin is not affected. Finally, main beneficiaries from increase in banking competition are older households with head age 35 or above. These results are consistent with the fact that most Korean banks are multi-branch nation-wide banks transacting based on hard information. Banks are compelled to provide more household credit in order to compensate for the lower profitability in competitive market.

Keywords: Bank branch competition; credit constraints; information asymmetry (search for similar items in EconPapers)
JEL-codes: G01 G21 E44 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2015
New Economics Papers: this item is included in nep-ban, nep-com and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
ftp://163.239.156.99/wpaper/OSY_RIME_2015_01.pdf First version, 2015 (application/pdf)

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:sgo:wpaper:1501

Access Statistics for this paper

More papers in Working Papers from Research Institute for Market Economy, Sogang University Contact information at EDIRC.
Bibliographic data for series maintained by Jung Hur ().

 
Page updated 2021-04-09
Handle: RePEc:sgo:wpaper:1501