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Forced Bank Mergers and SME Financing

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  • Ishak Ramli

    (University of Tarumanagara, Jakarta, Indonesia)

Abstract

Access to finance is one of the most significant challenges for the creation, survival and growth of small and medium enterprises (SMEs), especially, innovative ones. However, forced bank mergers by Central bank of Indonesia may hurdle SME financing and growth. Using the financial data of seven Indonesian bank mergers within 2004-2009, periods three years before and after the merger, this study examines whether bank mergers may hurdle SME financing and growth. The study concludes that bank mergers in Indonesia decreased SME crediting but increased bank performance and SME crediting no longer influenced bank performance either. Bank mergers hurdle SME financing and growth.

Suggested Citation

  • Ishak Ramli, 2015. "Forced Bank Mergers and SME Financing," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(8), pages 30-36, July.
    • Handle: RePEc:mgs:ijmsba:v:1:y:2015:i:8:p:30-36
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.18.1003
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    References listed on IDEAS

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