The gap in business loans isn't about sexist bankers; it’s that women simply aren't asking for the cash as often as men.
While we assume banks discriminate against women-led firms, the data shows they approve loans at similar rates. The real issue is a massive 'application gap' where women are far less likely to apply for credit than men.
Women-Led Firms' Access to Bank Credit
SSRN · 6536158
This paper documents the existence and evolution of a gender gap in bank financing among non-financial firms, disentangling demand-and supply-side effects. Using quarterly panel data for French firms from 2012 to 2023, we find that this gap is driven by the demand side: women-led firms are between 12% and 26% less likely to apply for bank credit, depending on the type of loan. However, conditional on applying, the probability of rejection for women-led firms does not differ significantly from th