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A Study of the Relationship Between Bank Size and Attitudes Toward Small and Medium-Sized Enterprise Lending

Xiaoqian Zhao

Abstract


This article is divided into three parts to explain the relationship between bank size and SME lending attitudes. First, the paper defines Small and Medium-sized enterprises and bank size. Secondly, the article classifies the lending techniques of banks in order to clearly analyze the attitude of bank size and Small and Medium-sized enterprises lending afterwards. In addition, the relative advantages of large banks and small banks are compared based on the above study. The comparison leads to the conclusion that small banks are more suitable to use relationship-based lending techniques.


Keywords


Enterprise Lending; Small Banks; Medium-Sized Enterprises; Financial Statements Lending; Asset-Based Lending

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References


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DOI: http://dx.doi.org/10.18686/fm.v8i1.7897

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