Foreign bank entry and firms ’ access to bank credit : Evidence from China

@inproceedings{Lin2015ForeignBE,
  title={Foreign bank entry and firms ’ access to bank credit : Evidence from China},
  author={Huidan Lin},
  year={2015}
}
This paper studies the impact of foreign bank entry on domestic firms’ access to bank credit using a within-country staggered geographic variation in the policy of foreign bank lending in China. The paper finds that after foreign bank entry profitable firms use more long-term bank loans; whereas firms with higher value of potential collateral do not. It also finds that non-state-owned firms become able to substitute some trade credit with long-term bank loans. The findings suggest that less… CONTINUE READING

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