TY  - JOUR
AU  - Cetorelli,Nicola
AU  - Strahan,Philip E.
TI  - Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10832
PY  - 2004
Y2  - October 2004
UR  - http://www.nber.org/papers/w10832
L1  - http://www.nber.org/papers/w10832.pdf
N1  - Author contact info:
Nicola Cetorelli
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045
Tel: 212 720 5071
Fax: 212 720 8363
E-Mail: nicola.cetorelli@ny.frb.org

Philip Strahan
Carroll School of Management
324B Fulton Hall
Boston College
Chestnut Hill, MA  02467
Tel: 617/552-6430
E-Mail: philip.strahan@bc.edu
AB  - This paper tests how competition in local U.S. banking markets affects the market structure of non-financial sectors. Theory offers competing hypotheses about how competition ought to influence firm entry and access to bank credit by mature firms. The empirical evidence, however, strongly supports the idea that in markets with concentrated banking, potential entrants face greater difficulty gaining access to credit than in markets where banking is more competitive.
ER  -