Bank Local Specialization - Sciences Po Access content directly
Preprints, Working Papers, ... Year : 2022

Bank Local Specialization

Abstract

Using micro-data of the universe of bank-SME relationships in France, we show that banks specialize locally (at the branch level) by industry, and that this specialization shapes the equilibrium amount of borrowing by small firms. For identification, we exploit the reallocation of local clients from closed down branches to nearby branches of the same bank, which induced quasi-random variation in the match between a firm's industry and the industry of specialization of the lending branch. We show that branch reallocation leads, on average, to a substantial and permanent decline in small firm borrowing. This decline is twice larger for firms whose accounts are reallocated from branches less specialized in their industry than the original one.
Fichier principal
Vignette du fichier
2022_duquerroy_mazetsonilhac_mesonnier_paravsini_bank_local_specialization.pdf (4.23 Mo) Télécharger le fichier
Origin Publisher files allowed on an open archive

Dates and versions

hal-03812807 , version 1 (12-10-2022)

Licence

Identifiers

  • HAL Id : hal-03812807 , version 1

Cite

Anne Duquerroy, Clément Mazet-Sonilhac, Jean-Stéphane Mésonnier, Daniel Paravisini. Bank Local Specialization. 2022. ⟨hal-03812807⟩
118 View
78 Download

Share

Gmail Mastodon Facebook X LinkedIn More