Bank deregulation and progress in information technology altered the geographical diffusion of banking structures and instruments, and reduced operational distance between banks and local economies. However, the consolidation of the banking industry promoted the geographical concentration of banking decision-making centres and increased functional distance between local banking systems and local borrowers. This paper focuses on the impact that these spatial diffusionconcentration phenomena had on the financing constraints of Italian firms over the period 1996–2003. Our findings show that greater functional distance stiffened financing constraints, especially for small firms, while smaller operational distance did not always enhance credit availability.
Banks, Distances and Firms’ Financing Constraints / Alessandrini, P.; Presbitero, A.; Zazzaro, A.. - In: REVIEW OF FINANCE. - ISSN 1572-3097. - 13:(2009), pp. 261-307. [10.1093/rof/rfn010]
Banks, Distances and Firms’ Financing Constraints
ZAZZARO A.
2009
Abstract
Bank deregulation and progress in information technology altered the geographical diffusion of banking structures and instruments, and reduced operational distance between banks and local economies. However, the consolidation of the banking industry promoted the geographical concentration of banking decision-making centres and increased functional distance between local banking systems and local borrowers. This paper focuses on the impact that these spatial diffusionconcentration phenomena had on the financing constraints of Italian firms over the period 1996–2003. Our findings show that greater functional distance stiffened financing constraints, especially for small firms, while smaller operational distance did not always enhance credit availability.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.