Call for a Spatial Classification of Banking Systems through the Lens of SME Finance -- Decentralized versus Centralized Banking in Germany as an Example

• DOI: 10.2139/ssrn.2446822
• Publication Date: 2014-06-11T15:33:50Z
• Authors: Stefan GGrtner; Franz Fllgel
• Keywords: Through-the-lens metering

We are calling for comparisons of banking and systems from a spatial perspective. Therefore, this paper develops classification identifying decentralized centralized according to two characteristics: geographical market orientation (regional vs. supraregional) – determine whether banks facilitate regional savings-investment cycles place decision-making (proximity distance) identify the flow soft information is supported in SME lending. The degree banks' centralization also approximated by concentration bank employees shows remarkable explanatory power Germany, as de-centralized increase lending at expense banks.