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Does Banking Diversity Matter for Credit Access? Evidence on SMES in Europe

Francesco Trivieri

Kyklos2026https://doi.org/10.1111/kykl.70043article
AJG 2ABDC A
Weight
0.50

Abstract

This paper investigates SMEs' access to credit from the perspective of the biodiversity argument in banking, a conceptual framework that has been largely overlooked in the literature. Using bank‐ and firm‐level data for eight European countries from 2014 to 2022, I empirically assess the role of bank diversity—measured by the Gini‐Simpson index, in analogy with ecological diversity—on the probability of SMEs being credit rationed. My results indicate that institutional heterogeneity within the banking sector mitigates credit constraints faced by SMEs while also increasing firms' propensity to apply for bank loans. These findings align with the core tenet of the biodiversity approach, which posits that a banking landscape marked by a plurality of institutional forms represents a valuable asset for financing the real economy. In light of my evidence, preserving and fostering institutional diversity within the banking sector should be regarded as a policy priority.

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https://doi.org/https://doi.org/10.1111/kykl.70043

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@article{francesco2026,
  title        = {{Does Banking Diversity Matter for Credit Access? Evidence on SMES in Europe}},
  author       = {Francesco Trivieri},
  journal      = {Kyklos},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/kykl.70043},
}

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Does Banking Diversity Matter for Credit Access? Evidence on SMES in Europe

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.