Partial credit guarantees and firm performance: evidence from Colombia

Arráiz, Irani; Meléndez, Marcela; Stucchi, Rodolfo

doi:10.1007/s11187-014-9558-4

Cited by 47 publications

(21 citation statements)

References 27 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…One main of their study's main findings indicates that programs that provide financing to SMEs could enhance their performance, increase investment in SMEs and decrease unemployment. (Arraiz, Melendez, & Stucchi, 2014) examine the influence of guarantee funds on SMEs' performance among Colombian firms. Their study covers the period 1997 to 2007, for a large panel dataset.…”

Section: Literature Reviewmentioning

confidence: 99%

The causal relationship between SME sustainability and banks’ risk

Shihadeh

Gamage

Hannoon

2019

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

This study aims to examine the influence of banks' credit to SMEs on non-performing loans. Many studies find that access to financial sources has become an obstacle to the growth and sustainability of SMEs. This study uses theoretical and empirical approaches to support the study's hypothesis. Data are presented for 15 banks in Palestine, covering the period 2006 to 2016.The study uses empirical techniques regarding to examine the relationship between the variables. Evidence shows that encouraging banks to lend more money to SMEs through the use of a guarantee fund could decrease their risk. Thus, enhancing credit to SMEs could improve the growth and sustainability of these firms. The study recommending policymakers and bank's managers could develop their strategies according to SME's needing. Therefore, enhancing the growth in these firms and reducing the bank's risk. Furthermore, adopting the guarantee funds in developing countries could decrease the bank's risk, thus lending more to SME. The value of this paper comes from the importance of SME in the economic growth and development sustainability. Therefore, there is a need to convince banks to enhance SME credit through a guarantee fund and that extending this type of credit would positively influence banks' activities.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

The causal relationship between SME sustainability and banks’ risk

Shihadeh

Gamage

Hannoon

2019

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

show abstract

“…Asimismo, Eslava et al (2013) y Casas et al (2015) encuentran que la productividad individual es fundamental para explicar la dinámica de supervivencia o salida de firmas. Los trabajos de Arráiz et al (2012) y estudian la relación entre el acceso a créditos financieros y diferentes medidas del desempeño de las firmas. Ningún otro trabajo, del que tengamos conocimiento, describe en detalle y de forma comprensiva la industria colombiana en lo corrido del presente siglo.…”

Section: Gráficounclassified

La industria colombiana en el siglo XXI

Carranza¹,

Arias-Rodríguez²,

Bejarano³

et al. 2018

ESPE

View full text Add to dashboard Cite

“…If there were no credit guarantee system in place and an SME went into bankruptcy, the bank would lose its entire loan. Research is needed into the optimal level of partial credit guarantees; that is, the percentage at which a credit guarantee corporation can encourage lending yet ensure that banks have an incentive to carefully assess the creditworthiness of borrowers Arráiz, Meléndez, and Stucchi (2014). have provided a framework for a partial credit guarantee system.…”

mentioning

confidence: 99%

Analysis of Credit Ratings for Small and Medium-Sized Enterprises: Evidence from Asia

Yoshino

Taghizadeh–Hesary

2015

Asian Development Review

View full text Add to dashboard Cite

In Asia, small and medium-sized enterprises (SMEs) account for the major share of employment and dominate domestic economies, yet providing these companies with access to finance is a challenge across the region. Asian economies are often characterized as having bank-dominated financial systems and underdeveloped capital markets, in particular with regard to venture capital. As a result, banks are the main source of financing for SMEs. It is crucial for banks to be able to distinguish healthy from risky companies. If they can do this, lending and financing SMEs through banks will be easier. In this paper, we explain the importance of SMEs in Asia. Then, we provide a scheme for assigning credit ratings to SMEs by employing two statistical analysis techniques-principal component analysis and cluster analysis-applying 11 financial ratios of 1,363 SMEs in Asia. If used by the financial institutions, this comprehensive and efficient method could enable banks and other lending agencies around the world, and especially in Asia, to group SME customers based on financial health and adjust interest rates on loans and set lending ceilings for each group.

show abstract

Partial credit guarantees and firm performance: evidence from Colombia

Cited by 47 publications

References 27 publications

The causal relationship between SME sustainability and banks’ risk

The causal relationship between SME sustainability and banks’ risk

La industria colombiana en el siglo XXI

Analysis of Credit Ratings for Small and Medium-Sized Enterprises: Evidence from Asia

Contact Info

Product

Resources

About