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SMEs, banks and the spatial differentiation of access to finance

Zhao, Tianshu; Jones-Evans, Dylan


Tianshu Zhao


© The Author (2016). Published by Oxford University Press. By utilizing the SME Finance Monitor and a unique dataset on the geographical location of all bank branches in 11 UK economic regions, this paper examines the relevance of spatial differentiation on SMEs' access to bank finance during the period of economic weakness following the 2007 financial crisis. We find evidence suggesting the presence of a regional-specific effect on SMEs' access to bank finance. Our findings show that greater functional distance between bank headquarters and branches exacerbates the credit constraints faced by local SMEs although the impact of a smaller operational distance between branches and local SMEs is inconclusive, ceteris paribus. Our finding holds over a battery of robustness tests.

Journal Article Type Article
Publication Date Jul 1, 2017
Journal Journal of Economic Geography
Print ISSN 1468-2702
Electronic ISSN 1468-2710
Publisher Oxford University Press (OUP)
Peer Reviewed Peer Reviewed
Volume 17
Issue 4
Pages 791-824
APA6 Citation Zhao, T., & Jones-Evans, D. (2017). SMEs, banks and the spatial differentiation of access to finance. Journal of Economic Geography, 17(4), 791-824.
Keywords banks, finance
Publisher URL
Additional Information Additional Information : This article has been accepted for publication in Journal of Economic Geography Published by Oxford University Press.


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