Abstract
This paper explores the geography of bank lending to small and medium-sized enterprises (SMEs) and tests the argument that large institutions with complex organizational structures are better able to filter ‘hard’ information than ‘soft’
information. Mortgage lending is used as a control to illustrate the case of ‘hard’ and ‘soft’ information. Using data on individual bank lending to SMEs and mortgages by postcode area in Great Britain for the period 2013(2)–2014(4), the paper explains the spatial dispersion of SME lending in the UK in terms of geographical distance and supports the policy of establishing a geographically decentralized financial system as a counterbalance.
information. Mortgage lending is used as a control to illustrate the case of ‘hard’ and ‘soft’ information. Using data on individual bank lending to SMEs and mortgages by postcode area in Great Britain for the period 2013(2)–2014(4), the paper explains the spatial dispersion of SME lending in the UK in terms of geographical distance and supports the policy of establishing a geographically decentralized financial system as a counterbalance.
| Original language | English |
|---|---|
| Article number | VOL 55 No. 4 |
| Pages (from-to) | 679–692 |
| Number of pages | 15 |
| Journal | Regional Studies |
| Volume | 55 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 18 Dec 2020 |
Keywords
- G21G29L14