Nothing special about banks: competition and bank lending in Britain, 1885-1925

Fabio Braggion, Narly Dwarkasing, Lyndon Moore

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8 Citations (Scopus)


We investigate the impact of increasing bank concentration on bank loan contracts in a lightly regulated environment that allows us to abstract from possible confounding effects of regulation and focus on the "pure" effects of competition on bank lending. We study over 30,000 British bank loans over the period 1885 to 1925. Borrowers in counties with high bank concentration received smaller loans and posted more collateral than borrowers in other counties. In high concentration counties, the quality of loan applicants improved, suggesting that banks restricted credit, not that the quality of loan applicants had worsened.

Original languageEnglish
Pages (from-to)3502-3537
Number of pages36
JournalReview of Financial Studies
Issue number10
Publication statusPublished - Oct 2017
Externally publishedYes

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