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• Clever integration of macro level and micro level data, macro and micro connection. • Draw a chart of the development of bank branches in China. • Multi-method analysis of the influence mechanism between causal variables. This paper studies the impact of rural financial institutions on farmers' production input from the perspective of rural bank branch adjustment and rural household credit access. Based on the data of rural bank outlets and China Household Income Survey (CHIP) in 293 prefecture-level cities in China from 2013 to 2018, the results show that rural financial outlets have a significant positive impact on farmers' production input, and each unit increase in the number of bank outlets will increase farmers' production input by 0.24 units, and the proportion of consumer expenditure will decrease by 0.071 units. The number of bank outlets has significant heterogeneity of household head and region on the production input of farmers, and the bank outlets have a greater impact on the production input of farmers with high education level. The increase in the number of bank outlets in the eastern region can significantly increase the production input of farmers, but the increase in the number of bank outlets in the central and western regions will reduce the production input of farmers. The mechanism analysis shows that the increase of branches of rural financial institutions improves farmers' access to credit, which is an important channel affecting farmers' production input. This study provides a reference for the reform of rural financial institutions and the revitalization of rural industries in China. [ABSTRACT FROM AUTHOR]

This study focusses on the high growth of Latino-owned businesses (LOBs) in the United States during the last two decades and the constraints these businesses face during their start-up and development stages. During this period, the number of LOBs increased faster than businesses owned by other racial and ethnic groups. The study also addresses the following aspects of Latino business ownership: 1) the main reasons U.S. Latinos decide to become business owners; 2) their reluctance to seek loans from formal financial markets; 3) internal and external factors that limit Latino business owner participation in financial markets, 4) and the internal and external factors that banks and other financial institutions face when working with Latino businesspeople. We found important gaps in access to credit between LOBs and two comparison groups: i) Equally-Latino & non-Latino firms and ii) White-owned businesses. [ABSTRACT FROM AUTHOR]

We use a quasi-natural experimental framework provided by the staggered removals of interstate banking restrictions to identify the effect of a credit supply shock on household finances in the US. Banking deregulation is found to have increased the propensity to hold debt, the amount of debt held and the level of leverage. We also find that the deregulation had a more pronounced effect on non-white headed households. Moreover, we show how deregulation increased debt and leverage at the middle and the top of the debt and leverage distributions. The credit supply shock also had a relatively large effect on non-white headed households at the top 20% of the debt distribution. [ABSTRACT FROM AUTHOR]

This research investigates the effect of bank competition on a firm's cost of and access to credit. Previous studies in developed countries found that bank competition increases the cost of credit, which is in line with the infonnation hypothesis. Bank competition also increases a firm's access to credit based on the market power hypothesis. However, the banking industry in developing countries has different characteristics compared to developed counties and this leads to a different result. Using data from ASEAN-5 countries from 2005 to 2016, this study found that the increase of banking competition leads to an easier access for a firm to obtain credit. Increased competition also decreases the cost of credit paid by the firm. We also find that the effect of bank competition on cost of credit is generally influenced by a firm's size and tangibility. [ABSTRACT FROM AUTHOR]

Providing small and medium enterprises (SMEs) with access to external finance has been a major concern for many governments and international organizations for three decades. In recent years the experiences of emerging market countries suggest that a paradigm shift is taking place in SME finance. Particularly in fast-growing emerging market countries such as Turkey, banks are increasingly targeting SMEs as a new line of banking business. This research analyzes how macroeconomic factors have contributed to increased commercial bank lending to SMEs in six emerging market countries: Turkey, Argentina, Brazil, Mexico, Chile, and Poland. Based on time series and panel data analysis, we find that a high GDP growth rate and increased competition in the banking sector have contributed to increased banking sector credit to SMEs. The findings also reveal that curbing the high inflation rate and reducing government domestic borrowing have significantly encouraged bank lending to the SME segment. [ABSTRACT FROM AUTHOR]

We test the hypothesis that sunshine affects the discouragement of borrowing firms. Using a sample of approximately 45,000 firms from 124 countries for the period 2010–2020, we find that higher sunshine is associated with a greater probability of being discouraged for the borrowing firm. Furthermore, we establish that the discouraging impact of sunshine on the decision to apply for a loan is only observed in low latitude zones. We explain these findings by arguing that more sunshine creates a negative mood in hot regions. Additional results suggest that managerial features affect the discouraging impact of sunshine. • We test the hypothesis that sunshine affects the discouragement of borrowing firms. • Higher sunshine is associated with a greater probability to be discouraged for the borrowing firm. • The discouraging impact of sunshine is only observed in low latitude zones. • We explain these findings by the fact that greater sunshine creates a negative mood in hot regions. [ABSTRACT FROM AUTHOR]

• Literature has found that women outperform men in terms of loan repayment. • Does higher gender equality in access to credit therefore foster financial stability? • We perform regressions at the bank level on a large dataset all over the world. • We find a negative relation between the gender gap in access to credit and financial stability. • Thus enhancing access to credit for women relative to men is beneficial for financial stability. Literature has found that women outperform men in terms of loan repayment. We can therefore question whether more gender equality in access to credit fosters financial stability. We test this hypothesis using cross-country data on financial inclusion from the World Bank's Global Findex database and bank-level data on financial stability. We perform regressions at the bank level to check the existence of a relation between the female-to-male ratio of access to credit and financial stability. We find evidence of a negative relation between the gender gap in access to credit and financial stability. Therefore our findings support the view that enhancing access to credit for women relative to men is beneficial for financial stability. [ABSTRACT FROM AUTHOR]

This paper analyzes the effect of mass shootings on peer-to-peer lending behavior. Using U.S. data from 2014–2018, we implement an event study methodology to exploit the quasi-experimental nature of mass-shooting incidents on local credit markets. Our findings indicate a short-term tightening of local credit conditions (higher interest rates and lower loan amounts) immediately after a mass shooting in affected communities relative to those in non-affected communities. These findings highlight that online credit marketplaces are reactive to random local shocks of violence at the community level and their corresponding public and media attention. • Online peer-to-peer lending marketplaces price in local random shocks of violence such as mass shootings. • Borrowing costs (higher interest rates and lower loan amounts) increase immediately after a mass shooting for borrowers in affected communities relative to those in non-affected communities. • The effects of mass shootings on online credit markets are driven by the first few months following the incidents. • Public attention increases immediately after a mass-shooting incident, providing supporting evidence of the role of information in influencing borrower and lender behavior. [ABSTRACT FROM AUTHOR]

• Fintech credit platforms can act as both complements and substitutes for traditional bank credit. • In less concentrated, well liquid and more stable banking sectors, the bank credit and fintech credit are more likely to co-live and act as complements. • In less stable and highly concentrated banking sectors, fintech could act as substitute to bank credit. Using a panel of 78 countries for 2013 – 2019, I show that fintech credit platforms can act as both complements and substitutes for traditional bank credit and that banking sector characteristics are likely to play a part in shaping the relationship. Estimates suggest that in less concentrated, more liquid and more stable banking sectors, banks and fintech credit platforms tend not to compete for the same clientele and coexist as complements. On the other hand, in less stable and highly concentrated banking sectors, I find evidence that fintech may act as a direct substitute to bank credit. [ABSTRACT FROM AUTHOR]

• Fintech credit platforms can act as both complements and substitutes for traditional bank credit. • In less concentrated, well liquid and more stable banking sectors, the bank credit and fintech credit are more likely to co-live and act as complements. • In less stable and highly concentrated banking sectors, fintech could act as substitute to bank credit. Using a panel of 78 countries for 2013 – 2019, I show that fintech credit platforms can act as both complements and substitutes for traditional bank credit and that banking sector characteristics are likely to play a part in shaping the relationship. Estimates suggest that in less concentrated, more liquid and more stable banking sectors, banks and fintech credit platforms tend not to compete for the same clientele and coexist as complements. On the other hand, in less stable and highly concentrated banking sectors, I find evidence that fintech may act as a direct substitute to bank credit. [ABSTRACT FROM AUTHOR]

This article discusses the impact of economic inequality on the accrual of human capital in Colombia. The author comments on the relationship between human capital and macroeconomic growth in the country and analyzes the effects of income inequality on these factors. She also considers the role of the financial and credit markets as well as economic investments on inequality.