Bank Lending to Small Businesses in Latin America : Does Bank Origin Matter?

Clarke, George R.G. ; Cull, Robert ; Martinez Peria, Maria Soledad ; Sanchez, Susana M.

World Bank, Washington, DC

关键词: BALANCE SHEETS;    BANK LENDING;    BANK LOANS;    BANK SIZE;    BANKING CRISIS;   

DOI  :  10.1596/1813-9450-2760
RP-ID  :  WPS2760

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

In recent years foreign bankparticipation has increased tremendously in Latin America.Some observers argue that foreign bank entry will benefitLatin American banking systems by reducing the volatility ofloans and deposits and increasing efficiency. Others areconcerned that foreign banks might choose to extend creditonly to certain customers, leaving some sectors-such assmall businesses-unserved. The authors examine this issue.Using bank-level data for Argentina, Chile, Colombia, andPeru during the mid-1990s, they empirically investigatewhether bank origin affects the share and growth rate ofbank lending to small businesses. They find that althoughforeign banks generally lent less to small businesses (asshare of total lending) than private domestic banks, thedifference is due primarily to the behavior of small foreignbanks. The difference was considerably smaller for large andmedium-sized banks. And in Chile and Colombia, large foreignbanks might actually lend slightly more (as share of totallending) than large domestic banks.