The Repercussions on Small Banks and Small Businesses of Procyclical Bank Capital and Countercyclical Loan Guarantees

2007 ◽  
Author(s):  
Diana Hancock ◽  
Joe Peek ◽  
James A. Wilcox
Keyword(s):  
Small Businesses ◽  
Bank Capital ◽  
Loan Guarantees ◽  
Small Banks

The inter-relationships among liquidity creation, bank capital and credit risk: evidence from emerging Asia–Pacific economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tu D.Q. Le ◽  
Xuan T.T. Pham
Keyword(s):  
Credit Risk ◽  
Emerging Economies ◽  
Financial Stability ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Capital Requirements ◽  
Asia Pacific ◽  
Bank Capital ◽  
Content Type ◽  
Small Banks

PurposeThis study investigates the inter-relationships among liquidity creation, bank capital and credit risk in selected emerging economies between 2012 and 2016.Design/methodology/approachA three-step procedure as proposed by Berger and Bouwman (2009) is used to measure liquidity creation. Thereafter, a simultaneous equations model with the generalized method of moments (GMM) estimator is used to examine the links between liquidity creation, bank capital and credit risk.FindingsThe findings indicate that bank capital and credit risk affect each other positively after controlling for liquidity creation. Also, the findings show a negative impact of credit risk on liquidity creation while our findings do not find any evidence to confirm the reverse relationship between them. Furthermore, the findings demonstrate a two-way negative relationship between liquidity creation and bank capital in these emerging economies. Finally, the results indicate a positive relationship between capital and credit risk, especially in the case of small banks in the sample.Practical implicationsThe findings suggest that the trade-off between the benefits of financial stability induced by tightening capital requirements and those of improved liquidity creation has crucial implications for policymakers and bank regulators in making the banking system more resilient. A positive impact of capital on credit risk emphasizes that the authorities in selected emerging economies should put more attention on small banks to ensure their exposures under target control.Originality/valueThis is the first study that examines the dynamic interrelationships among liquidity creation, bank capital and credit risk in the Asia–Pacific region.

scholarly journals Bank capital requirements, loan guarantees and firm performance

2019 ◽  
pp. 100825 ◽  
Author(s):  
Sergio Mayordomo ◽  
Antonio Moreno ◽  
Steven Ongena ◽  
María Rodríguez-Moreno
Keyword(s):  
Firm Performance ◽  
Capital Requirements ◽  
Bank Capital ◽  
Loan Guarantees ◽  
Bank Capital Requirements

Cookie Cutter vs. Character: The Micro Structure of Small Business Lending by Large and Small Banks

2004 ◽  
Vol 39 (2) ◽  
pp. 227-251 ◽  
Author(s):  
Rebel A. Cole ◽  
Lawrence G. Goldberg ◽  
Lawrence J. White
Keyword(s):  
Small Business ◽  
Decision Process ◽  
Small Businesses ◽  
Financial Statements ◽  
Micro Structure ◽  
Small Business Lending ◽  
Micro Level ◽  
Small Banks ◽  
Loan Approval ◽  
Interesting Area

AbstractThe informational opacity of small businesses makes them an interesting area for the study of banks' lending practices and procedures. We use data from a survey of small businesses to analyze the micro level differences in the loan approval processes of large and small banks. We provide evidence that large banks ($1 billion or more in assets) employ standard criteria obtained from financial statements in the loan decision process, whereas small banks rely to a greater extent on information about the character of the borrower. These cookie-cutter and character approaches are compatible with the incentives and environments facing large and small banks.

Spotlight on Consulting Issues: The Psychology of Consulting With Small Businesses

2002 ◽  
Author(s):  
Steve Gravenkemper
Keyword(s):  
Small Businesses

What Do I/O Psychologists Have to Say to Small Businesses?

1985 ◽  
Author(s):  
Paul M. Connolly
Keyword(s):  
Small Businesses

How Framing can Influence on the Propensity of Small Businesses to Apply Financial Instruments. Case of Poland

2011 ◽  
Author(s):  
Przemyslaw Kulawczuk ◽  
Andrzej Poszewiecki
Keyword(s):  
Small Businesses ◽  
Financial Instruments

Small Industry, Gimmicks and Moscow Statistics, or How the Small Russian Enterprise Came into the World (Russian Physiological Sketch, 1830-1840)

2009 ◽  
pp. 123-129
Author(s):  
Yu. Golubitsky
Keyword(s):  
Small Businesses ◽  
Statistical Data ◽  
Russian Enterprise ◽  
Small Enterprises ◽  
Business Practices ◽  
Way Of Life ◽  
The World ◽  
Small Industry ◽  
Xix Century

The article considers business practices of Moscow small industry in the XIX century, basing upon physiological sketches of N. Polevoy and I. Kokorev, statistical data and the classification of professions are also presented. The author claims that the heroes of the analyzed sketches are the forefathers of Moscow small businesses and shows what a deep similarity their occupations and a way of life bear to the present-day routine existence of small enterprises.

Profitability and Efficiency of the Bulgarian Banks – Large, Medium-Sized and Small Banks

2018 ◽  
Author(s):  
Irina Petkova Kazandzhieva-Yordanova
Keyword(s):  
Small Banks

The effect of credit guarantee on creating employment and keeping employees of small businesses

2014 ◽  
Vol 34 (1) ◽  
pp. 29-58
Author(s):  
Sung-ho Kang ◽  
Chang-Kyun Chae ◽  
오승현 ◽  
문외솔 ◽  
Chong Ook Rhee ◽  
...  
Keyword(s):  
Small Businesses ◽  
Credit Guarantee

Matching Innovation Strategy to the Lifecycle of the Firm

2018 ◽  
Vol 18 (3) ◽  
pp. 42-49
Keyword(s):  
Small Businesses ◽  
Exploratory Study ◽  
Innovation Strategy ◽  
Future Directions ◽  
Innovation Strategies

This exploratory study looks at the innovation strategies employed during specific stages of the firm lifecycle for small businesses. The study locates and uncovers seven themes surrounding the intersection of innovation strategies and the different stages of the firm. In so doing, future directions to answer the questions uncovered by this exploratory study are suggested.

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