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Preprints, Working Papers, ... Year : 2022

Bank Local Specialization


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.
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Dates and versions

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



  • HAL Id : hal-03812807 , version 1


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