Purpose - The purpose of this paper is to examine the determinants of non-bank depository institutions (non-bank financial corporations) lending to firms. The paper aims to contribute to the existing literature by providing empirical evidence from firm-level data and unveiling factors related to access to non-bank financial corporations by firms.
Research design, data, and methodology – We used the data on borrowing by firms from CRETOP from years 2008 to 2011. Using the manufacturing industry, we examined what firm-level characteristics explained the increase in borrowing from non-bank financial corporations rather than the banks.
Results – Analyzing the firm-level data from 2008 to 2011, we found that firms were more likely to borrow from non-bank financial institutions as the size of the firm increases, implying that large firms have more access to non-bank financing than small and medium-sized firms. In addition, it also showed that small and medium-sized firms moved to non-bank financial corporations for loans.
Conclusion - Non-bank depository institutions are not a substitute for bank lending to firms. More specifically, they replace bank lending to firms mostly for large firms rather than small and medium-sized firms. Also, collateral and other firm-level characteristics do not matter in accounting for non-bank lending to firms.

Abstract
 1. Introduction
 2. Data Description
  2.1. Evidence from Aggregate Data
  2.2 Facts from Micro Data
 3. Determinants of Non-Bank Borrowing
  3.1 Baseline Empirical Analysis
  3.2 Robustness Check
 4. Conclusion
 References

• Mihye Lee(Division of Economics and Information Statistics, Kangwon National University, Korea.)