Gender and Bank Lending after the Global Financial Crisis:

Are Women Entrepreneurs Safer Bets?

Weixi Liu, Marc Cowling, Susan Marlow

Research output: Contribution to journalArticle

Abstract

Using gender as a theoretical framework, we analyse the dynamics of bank lending to small- and medium-sized enterprises (SME) in the aftermath of the 2008 global financial crisis. Using six waves of the SME Finance Monitor survey, we apply a formal Oaxaca–Blinder decomposition to test whether gender impacts upon the supply and demand for debt finance by women. Reflecting established evidence, we found women had a lower demand for bank loans; contradicting accepted wisdom however, we found that women who did apply were more likely to be successful. We argue that feminised risk aversion might inform more conservative applications during a period of financial uncertainty which may be beneficial for women in terms of gaining loans. However, we also uncover more subtle evidence suggesting that bank decisions may differ for women who may be unfairly treated in terms of collateral but regarded more positively when holding large cash balances.
Original languageEnglish
Pages (from-to)1-28
Number of pages28
JournalSmall Business Economics
DOIs
Publication statusPublished - 13 Apr 2019

Keywords

  • Gender
  • finance
  • bank lending
  • risk
  • discrimination

Cite this

Gender and Bank Lending after the Global Financial Crisis: Are Women Entrepreneurs Safer Bets? / Liu, Weixi; Cowling, Marc; Marlow, Susan.

In: Small Business Economics, 13.04.2019, p. 1-28.

Research output: Contribution to journalArticle

@article{544975006098446d8cc8fc49cd530cd3,
title = "Gender and Bank Lending after the Global Financial Crisis:: Are Women Entrepreneurs Safer Bets?",
abstract = "Using gender as a theoretical framework, we analyse the dynamics of bank lending to small- and medium-sized enterprises (SME) in the aftermath of the 2008 global financial crisis. Using six waves of the SME Finance Monitor survey, we apply a formal Oaxaca–Blinder decomposition to test whether gender impacts upon the supply and demand for debt finance by women. Reflecting established evidence, we found women had a lower demand for bank loans; contradicting accepted wisdom however, we found that women who did apply were more likely to be successful. We argue that feminised risk aversion might inform more conservative applications during a period of financial uncertainty which may be beneficial for women in terms of gaining loans. However, we also uncover more subtle evidence suggesting that bank decisions may differ for women who may be unfairly treated in terms of collateral but regarded more positively when holding large cash balances.",
keywords = "Gender, finance, bank lending, risk, discrimination",
author = "Weixi Liu and Marc Cowling and Susan Marlow",
year = "2019",
month = "4",
day = "13",
doi = "10.1007/s11187-019-00168-3",
language = "English",
pages = "1--28",
journal = "Small Business Economics",
issn = "0921-898X",
publisher = "Springer Netherlands",

}

TY - JOUR

T1 - Gender and Bank Lending after the Global Financial Crisis:

T2 - Are Women Entrepreneurs Safer Bets?

AU - Liu, Weixi

AU - Cowling, Marc

AU - Marlow, Susan

PY - 2019/4/13

Y1 - 2019/4/13

N2 - Using gender as a theoretical framework, we analyse the dynamics of bank lending to small- and medium-sized enterprises (SME) in the aftermath of the 2008 global financial crisis. Using six waves of the SME Finance Monitor survey, we apply a formal Oaxaca–Blinder decomposition to test whether gender impacts upon the supply and demand for debt finance by women. Reflecting established evidence, we found women had a lower demand for bank loans; contradicting accepted wisdom however, we found that women who did apply were more likely to be successful. We argue that feminised risk aversion might inform more conservative applications during a period of financial uncertainty which may be beneficial for women in terms of gaining loans. However, we also uncover more subtle evidence suggesting that bank decisions may differ for women who may be unfairly treated in terms of collateral but regarded more positively when holding large cash balances.

AB - Using gender as a theoretical framework, we analyse the dynamics of bank lending to small- and medium-sized enterprises (SME) in the aftermath of the 2008 global financial crisis. Using six waves of the SME Finance Monitor survey, we apply a formal Oaxaca–Blinder decomposition to test whether gender impacts upon the supply and demand for debt finance by women. Reflecting established evidence, we found women had a lower demand for bank loans; contradicting accepted wisdom however, we found that women who did apply were more likely to be successful. We argue that feminised risk aversion might inform more conservative applications during a period of financial uncertainty which may be beneficial for women in terms of gaining loans. However, we also uncover more subtle evidence suggesting that bank decisions may differ for women who may be unfairly treated in terms of collateral but regarded more positively when holding large cash balances.

KW - Gender

KW - finance

KW - bank lending

KW - risk

KW - discrimination

U2 - 10.1007/s11187-019-00168-3

DO - 10.1007/s11187-019-00168-3

M3 - Article

SP - 1

EP - 28

JO - Small Business Economics

JF - Small Business Economics

SN - 0921-898X

ER -