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Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets / Nicola Cetorelli, Philip E. Strahan.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Cetorelli, Nicola.
Contributor:
National Bureau of Economic Research.
Strahan, Philip E.
Series:
Working Paper Series (National Bureau of Economic Research) no. w10832.
NBER working paper series no. w10832
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Finance as a Barrier to Entry
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2004.
Summary:
This paper tests how competition in local U.S. banking markets affects the market structure of non-financial sectors. Theory offers competing hypotheses about how competition ought to influence firm entry and access to bank credit by mature firms. The empirical evidence, however, strongly supports the idea that in markets with concentrated banking, potential entrants face greater difficulty gaining access to credit than in markets where banking is more competitive.
Notes:
Print version record
October 2004.

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