Abstract Title: The impact of the regional characteristics on lending to companies.

Level: Degree of Master of Science in Business and Economics 

Authors: Felicia Mandorf and Juhlina Friman  

Published: 2023-05-23

Supervisor: Hans Landström

Background: There is extensive research regarding the lending process to companies. Furthermore, previous research states that there are differences regarding different market situations based on the number of financiers and entrepreneurial ventures with growth potential. In addition, there is a lack of empirical evidence as to whether the characteristic of the region has any impact on lending to companies.

Purpose: The aim of the study is to identify whether the regional nature affects a Swedish commercial bank's lending to companies. We intend through this study to contribute to an understanding of potential differences between selected regions.

Research question: What significance does the characteristic of the region have for the bank's lending to companies and how can this relationship be understood?

Theoretical reference frame: The study's theoretical frame of reference presents previous research regarding banks' credit assessment and regional capital gaps. The chapter ends with the study's elaborated analysis model.

Methodology: The study is characterized by a qualitive study carried out with an abductive approach. The data collection has been done through interviews where the material has been analyzed using the Gioia method.

Conclusions: The conclusion of the study profess that the regional characteristics has a certain influence on lending to companies. Institutionalization, on the other hand, contributes to limiting the regional establishment.