Validity of investment loan approval model for SMEs in Serbia

Abstract

SažetakMala i srednja preduzeća (MSP) su glavni nosioci ekonomskog razvoja. MSP investiraju sredstva u nove proizvode, nove tehnologije i osvajanje novih tržišta. Njihov krajnji cilj je da povećaju vrednost kompanije, odnosno, da obezbede profit za vlasnika. Predmet ovog istraživanja jeste objektivna analiza validnosti modela za odobrenje investicionog kredita malim i srednjim preduzećima (ILASME) koji najčešće koriste poslovne banke kada razmatraju da li će finansijski da podrže investicionu potrebu MSP klijenta. Cilj ovog rada je da ukaže na mogućnosti za unapređenje ILASME u domenu objektivnog donošenja odluke. Osnovna hipoteza istraživanja je da postoji sumnja u validnost/pouzdanost ILASME koji koriste poslovne banke u Srbiji. Primenom Pirsonovog koeficijenta korelacije će biti kvantifikovan stepen međusobne povezanosti ILASME i poslovnih performansi banke, odnosno indikatora kvaliteta aktive, poslovnog rezultata i kapitala. To će dalje uputiti na zaključak da uspešnost primene ILASME zavisi od usvojenih i primenjenih risk menadžment procedura, koje su predmet stalnog praćenja i unapređenja, uvažavajući kvalitativne karakteristike kreditora i korisnika kredita. I na kraju, proaktivno praćenje tržišnih trendova i fleksibilno unapređenje kreditnih procedura za upravljanje rizikom od presudnog je značaja. Ključne reči: MSP, investicije, analiza klijenata, analiza transakcija, novčani tokovi, risk menadžment AbstractSmall and medium enterprises (SMEs) are the main drivers of economic development. The SMEs invest funds in new products, new technologies, as well as in new markets. Finally, their aim is to increase the overall value of the company, i.e. to obtain profit for the shareholder. The subject of this research paper is an objective analysis of the validity of the investment loan approval model for the SMEs (ILASME) used by the commercial banks when considering whether to support financially an investment need of an SME client. The aim of this paper is to indicate the possibilities of improving the validity of the ILASME from the standpoint of validity for decision-making in this domain. The basic hypothesis of the research is that there is an objective doubt regarding the validity of the ILASME applied by the commercial banks in Serbia. By applying the Pearson correlation coefficient, the effect of the applied ILASME on the commercial banks' performance shall be quantified, i.e. the impact of nonperforming loans (NPLs) on the financial result and the equity of the bank shall be determined. Furthermore, it can be concluded that final success of the implemented ILASME depends on the adopted and accepted risk management procedures, which are the subject of permanent monitoring and improvement, as well as on the qualitative factors on the borrower and lender side. Moreover, permanent monitoring of market trends and improvement of credit risk management procedures are relevant.