Borrower discouragement and banking concentration: the moderating effect of bank stability for European SMEs

  1. Ginés Hernández-Cánovas 2
  2. Ana Mol-Gómez-Vázquez 1
  3. Pedro Martínez-Solano 3
  1. 1 Universitat d'Alacant
    info

    Universitat d'Alacant

    Alicante, España

    ROR https://ror.org/05t8bcz72

  2. 2 Universidad Politécnica de Cartagena
    info

    Universidad Politécnica de Cartagena

    Cartagena, España

    ROR https://ror.org/02k5kx966

  3. 3 Universidad de Murcia
    info

    Universidad de Murcia

    Murcia, España

    ROR https://ror.org/03p3aeb86

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Actas:
XXX Congreso Internacional de la Asociación Científica de Economía y Dirección de la Empresa (ACEDE)

Año de publicación: 2021

Tipo: Aportación congreso

GOOGLE SCHOLAR

Resumen

This research studies whether the effect of banking concentration on SMEs discouragement is moderated by the stability of the banking system of the country where the small and medium-sized firms are working in. We analyze 16,918 SMEs based on 28 European countries during the period 2011-2018. Applying multilevel methodology, the results show that bank concentration increases borrower discouragement, but this negative impact is moderated by the stability of the banking systems. Particularly, higher levels of bank concentration produce smaller increases in the likelihood of borrower discouragement for SMEs operating in countries with more stable banking systems.