How does entry by foreign banks affect lending to small and medium-size anterprises in developing countries? Analysis of data from a large cross-country survey of enterprises finds that foreign bank entry benefits firms of all sizes, although it seems to benefit larger firms more

Large and foreign-owned institutions may have difficulty extending relationship loans to informationally opaque small firms. Bank distress does not appear to affect small business lending, although even small firms may react to bank distress by borrowing from multiple banks