The authors propose a more complete conceptual framework for analysis of credit availability for small and medium enterprises (SMEs). In this framework, lending technologies are the key conduit through which government policies and national financial structures affect credit availability. They emphasize a causal chain from policy to financial structures which affect the feasibility and profitability of different lending technologies. These technologies, in turn, have important effects on SME credit availability. Financial structures include the presence of different financial institution types and the conditions under which they operate. Lending technologies include several transactions technologies, plus relationship lending. The authors argue that the framework implicit in most of the literature is oversimplified, neglects key elements of the chain, and often yields misleading conclusions. A common oversimplification is the treatment of transactions technologies as a homogeneous group, unsuitable for serving informationally opaque SMEs, and a frequent misleading conclusion is that large institutions are disadvantaged in lending to opaque SMEs.
Bibliographic Details
| Main Authors: |
Berger, Allen N.,
Udell, Gregory F. |
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| Format: | Policy Research Working Paper
biblioteca
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| Language: | English |
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| Published: |
World Bank, Washington, DC
2005-12
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| Subjects: | ACCOUNTING,
ACCOUNTING STANDARDS,
ADVERSE SELECTION,
AGENCY PROBLEMS,
ASSETS,
BANK LENDING,
BANK PRIVATIZATION,
BANKRUPTCY,
BANKRUPTCY PROCEDURES,
BANKS,
CHECKING ACCOUNTS,
COMMERCIAL BANKS,
COMMERCIAL CREDIT,
COMPARATIVE ADVANTAGE,
COMPARATIVE ADVANTAGES,
CONVENTIONAL FACTORING,
CREDIT RISK,
DEBT,
DEPOSIT ACCOUNTS,
DEVELOPMENT BANKS,
ECONOMIC PERFORMANCE,
ECONOMIC SYSTEMS,
ECONOMIC THEORY,
ECONOMIES OF SCALE,
EMPLOYMENT,
EXOGENOUS VARIABLES,
FACTORING,
FEDERAL RESERVE SYSTEM,
FINANCIAL CONTRACTS,
FINANCIAL INSTITUTIONS,
FINANCIAL RATIOS,
FINANCIAL SERVICES,
FINANCIAL STRUCTURES,
FINANCIAL SYSTEMS,
FIXED ASSET,
FIXED ASSETS,
FOREIGN BANKS,
FOREIGN INVESTMENT,
GDP,
GNP,
GOVERNMENT POLICIES,
GOVERNMENT SUBSIDIES,
IMPLICIT CONTRACT,
INEFFICIENCY,
INTEREST RATE,
INTEREST RATES,
INVENTORY,
LAWS,
LIQUIDATION,
LIQUIDATION VALUE,
MANDATES,
MARKET DISCIPLINE,
MARKET VALUE,
MERGERS,
MORAL HAZARD,
ORGANIZATIONAL FORM,
PREDICTIONS,
PRESENT VALUE,
PRICE DISCRIMINATION,
PROFITABILITY,
PROPERTY RIGHTS,
RELATIONSHIP LENDING,
SMALL BANKS,
SMALL BUSINESS,
STATE OWNERSHIP,
STATEMENT,
STATEMENTS,
SUBSIDIARY,
TAX RATE,
TRADE CREDIT,
TRADE CREDITORS,
TRANSITION ECONOMIES,
WORKING CAPITAL, |
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| Online Access: | http://documents.worldbank.org/curated/en/2005/12/6474484/more-complete-conceptual-framework-financing-small-medium-enterprises
http://hdl.handle.net/10986/8553
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