Viverita, Viverita and Lubis, Arief W. and Bustaman, Yosman and Riyanti, Ririen S. (2015) Foreign Bank Entry and Credit Allocation to SMEs: Evidence from ASEAN Countries. Procedia : Social and Behavioral Sciences, 211. pp. 1049-1056. ISSN 1877-0428

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Abstract

This study assesses the impact of foreign banks penetration based on their mode of entry: Greenfield and takeover of previously domestic-owned banks on the credit allocation to SMEs. The results reveal that Greenfield banks tend to lend smaller proportion to SMEs than take-over banks. This result implies that greenfield banks have comparative disadvantages in lending to more opaque borrowers, therefore ‘cream-skimming’ them and prefer to lend to “credit-worthy” customers like large corporations. The findings suggest that without any specific policy from regulators to fulfill the needs of SMEs, foreign banks will always tend to benefit only large corporations.

Item Type:	Article
Uncontrolled Keywords:	Foreign bank; Greenfield; Take over; Credit Allocation; SMEs; ASEAN
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD2340 Small and medium-sized businesses H Social Sciences > HG Finance > HG1501-3550 Banking H Social Sciences > HG Finance > HG3691-3769 Credit. Debt. Loans
Divisions:	Faculty of Business Administration and Communication > Department of Accounting
Depositing User:	Maria Lamury
Date Deposited:	11 Sep 2020 16:29
Last Modified:	24 Sep 2020 15:13
URI:	http://repository.sgu.ac.id/id/eprint/1766

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