Small banks and local economic development

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dc.contributor Bank of Finland Hasan, Iftekhar Molyneux, Phil Xie, Ru Hakenes, Hendrik 2014-09-22T07:59:00Z 2014-09-22T07:59:00Z 2014
dc.identifier.isbn 978-952-6699-69-1
dc.identifier.issn 1456-6184
dc.description.abstract This paper discusses the effects of small banks on economic growth. We first theoretically show that small banks operating at a regional level can spur local economic growth. As compared with big interregional banks, small regional banks are more effective in promoting local economic growth, especially in regions with lower initial endowments and severe credit rationing. We then test the model predictions using a sample of German banks and corresponding regional statistics. We find that small regional banks are more important funding providers in regions with low access to finance. The empirical results support the theoretical hypotheses. JEL Classification: G21, O16, R11. Keywords: small banks, regional economic growth.
dc.format.extent 49 s.
dc.language.iso eng
dc.subject pankkitoiminta
dc.subject vaikutukset
dc.subject taloudellinen kehitys
dc.subject alueet
dc.subject talouskasvu
dc.subject Saksa
dc.subject SP
dc.subject RP
dc.title Small banks and local economic development
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-20140807597
dc.subject.jel G21
dc.subject.jel O16
dc.subject.jel R11 Bank of Finland Research Discussion Papers
dc.series.year 2014
dc.series.number 5/2014
dc.series.sortingnumber 0005 29.1.2014
dc.description.publication Published in Review of Finance, Volume 19, Issue 2, 1 March 2015: 653-683

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