Concentração bancária e seus efeitos sobre as micro e pequenas empresas no Brasil

Abstract

The purpose of the article is to analyze the effect of banking concentration at the local level on the supply and credit costs of small and micro companies in Brazil. In addition, it will also be assessed how bank centralization affects the profitability of these companies. The literature indicates that the banking monopoly raises credit restrictions for smaller companies. However, this same literature also signals that large financial corporations are easing credit conditions for young companies. The database is composed of information from the banking system and small and micro companies in Brazilian municipalities. The methodology will be used in the application of four models. The first three analyzes analyzed the impacts of the banking structure on the finances of micro and small companies. The results expose the credit relationship and reduce the profitability of firms in the face of monopoly power. The latest demonstrated model that increases credit costs for smaller companies is also explained by bank inefficiency. Thus, the credit relationship in Brazil is explained by the inability of banks to gain extra monopoly power in the sector.