Bank Size, Asymetric Information and SMEs

In the previous sections we’ve analyzed the credit rationing theory and

concentration process taking as main frame the Argentinean case, in this section and the

following ones the work will try to show the empirical evidence found connecting the

credit rationing with the SMEs financing problems but highlighting the importance of

the asymmetric information related with the size of financial entities.

The sequence of relations would be interpreted as:



  • CONCENTRATION  → SMALL BANK DECREASE IN NUMBERS

→ b) ASYMMETRIC INFORMATION INCREASE → TRANSACTIONAL COST INCREASE (ECONOMIES OF SCALE NOT POSSIBLE)

→ c) ADVERSE SELECTION → CREDIT RATIONING

Referential frame: a) bank size b) asymmetric information c) SMEs