Efeito da distância no custo do crédito a partir do poder de monopólio dos bancos no Brasil

Abstract

The objective of this article is to examine the effects of distance on the cost of credit for micro and small businesses, based on the monopoly power of banks in Brazil. The literature indicates that the banking monopoly increases credit constraints for smaller firms. However, the literature on creditor-debtor relationships indicates that large financial corporations have improved credit conditions in the face of this monopoly power. The study used econometric models to examine the effects of monopoly power and distance on the credit conditions of smaller firms. Data were obtained from Estban/Bacen and IBGE. The results showed that this context results in increased credit costs for micro and small businesses due to bank inefficiency at the municipal level. This inefficiency is affected by the distance between the banks' headquarters and branch municipalities. Therefore, credit costs are impacted by the banking monopoly and are not spatially neutral.