Professor Kent Matthews, from the University of Cardiff, will present the findings of his paper on SME lending.
Using data on individual bank lending for 120 localities across Great Britain, Kent’s research aimed to test for the geographical dimension in SME lending as a rebuttal of Petersen and Rajan (2002) on the relevance of relationship banking for SME lending. In addition, he sought to examine the Stein (2002) view that large institutions with complex organisational structures are more able to filter ‘hard’ information than ‘soft’ information.
Kent will present his findings, which show that the functional distance between bank headquarters and branches is negatively related to the net underwriting of SME lending but has no impact on mortgage lending.
Organised by the iSPER Markets, Innovation and Competition (MIC) research group, this seminar is aimed at Plymouth University academic staff and postgraduate research students.
Please contact Alexander Haupt for more information.