Banking industry structure in China key to easing SME financing constraints.
Small- and medium-sized businesses in China often struggle to get the money they need to grow. This study looked at how the way banks are set up can affect these businesses' ability to get financing. By analyzing data from 161 companies, the researchers found that when banks focus more on helping small- and medium-sized businesses, it can make it easier for them to get the money they need. This means that if banks support these businesses better, it can help the economy grow more steadily.