Abstract：This paper presents a study of the relationship between regional banking market structure and SME financing in China. The results of the paper show that the characteristics and influence paths of banking market structure and the SME financing are regionally different. Nationwide as well as in eastern and middle regions, the relationship between the banking market structure and the main-bank choice of SMEs shows an upward U-shape, however an inverted U-shape in the western region.

Keyword：small bank financing; SME; banking market structure;