Beschreibung:
This paper studies whether online marketplace lending expands access to financial services for micro-, small- and medium-sized enterprises (MSMEs) and investigates their economic outcomes. Using data from one of the most prominent online lending marketplaces in China, we find that MSMEs are less likely to obtain loans. In addition, MSMEs usually set lower interest rates and apply for loans with higher amounts and short loan terms. We also show that the ex-post default risk of MSMEs is higher than that of borrowers from non-MSMEs. Overall, online marketplace lending is a channel for MSMEs financing, but its inclusion is limited