Which Came First, the Chicken or the Egg? Banks and Firms on Local Banking Markets
Jackowicz, Krzysztof; Kozlowski, Lukasz
Year: 2016 Volume: 66 Issue: 3 Pages: 182-206
Abstract: This study investigates the interactions between the financial health of cooperative banks and the performance of small and medium-sized enterprises (SMEs). Using a unique dataset on local banking markets in Poland, we establish that a strong financial standing of SMEs improves the profitability of banks that operate in the same neighborhood; however, the growth of banks is not affected. In contrast, the financial situation of cooperative banks is generally irrelevant for SME performance.
JEL classification: G21, G28
Keywords: local banks, cooperative banks, small and medium-sized enterprises, post-transition countries
RePEc: http://ideas.repec.org/a/fau/fauart/v66y2016i3p182-206.html
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