Analysis on the Small and Medium-Sized Enterprise Financing Bank Loans Availability

2014 ◽  
Vol 687-691 ◽  
pp. 4799-4802 ◽  
Author(s):  
Lei Xia
Keyword(s):  
Empirical Research ◽  
Significant Influence ◽  
Credit Rating ◽  
Bank Loans ◽  
Bank Loan ◽  
Bank Credit ◽  
Financing Channel ◽  
Indirect Financing ◽  
Credit Financing

Indirect financing is bank credit financing, this is the main source of funds of our country small and medium-sized enterprise.Fang Gang believes that the current urgent need to develop non state owned bank is an effective way to solve the financing of small and medium-sized enterprises.In a variety of exogenous financing channel of small and medium-sized enterprises, bank loan is one of the most important financing channel.This paper do empirical research about financing bank loans availability of small and medium-sized enterprise for to our country. The results show that, in general, enterprises in the credit rating, longer enterprise age, status of the enterprise market, enterprise's profit ability and provide collateral ability, enterprise is the enterprise and enterprise in the economy is more developed areas and other factors, has significant influence on enterprise ability to get loan.

The Influence of the Enterprise’s Market Power on its Availability for Trade Credit and Bank Credit Financing - Based on the Empirical Test about the Listed Companies of Electrical Energy

2014 ◽  
Vol 687-691 ◽  
pp. 4794-4798
Author(s):  
Dan Wu ◽  
Yan Luo
Keyword(s):  
Market Power ◽  
Trade Credit ◽  
Empirical Test ◽  
Electrical Energy ◽  
Listed Companies ◽  
Bank Loans ◽  
Bank Credit ◽  
Linear Regression Models ◽  
Trade Credits ◽  
Credit Financing

The paper, sampling the data from A-shares listed companies of electrical energy during the period of 2009 to 2012, checks out the influence of the enterprise’s market power on its capacity for trade credit and bank credit financing. The paper tries to find out the internal relationship among them by building linear regression models of the explained variable, Credit, the explaining variable, MP, and the control variables, SIZE, EBIT, LIQ, CFO, SBA and SBA*MP. In the study, we find that the target customers of trade credits and bank loans are almost enterprises with a high market power.

scholarly journals Hak Merek Sebagai Jaminan Fidusia Dalam Praktik Pemberian Kredit Oleh Perbankan Di Indonesia

2020 ◽  
Vol 2 (1) ◽  
pp. 137-152
Author(s):  
Wely Saputra ◽  
Muhammad Yasir
Keyword(s):  
Intellectual Property ◽  
Intellectual Property Rights ◽  
Legal Status ◽  
Bank Loans ◽  
Bank Loan ◽  
Bank Credit ◽  
Legal Research ◽  
Legal Requirements ◽  
Credit Guarantees ◽  
Loan Guarantees

The goal of this study is to develop the legal status of brand rights as collateral for bank credit guarantees and to analyze the risks of applying brand rights as collateral for bank credit guarantees in Indonesia. Brand rights are part of intellectual property rights which, of course, are of commercial significance to be used as collateral for bank loans. This study is a normative legal research using a regulatory methodology or a legislative approach to interpreting the idea of brand rights being used as security for bank loan guarantees, as laid down in statutory regulations, which are meant to try to get closer to the problems examined on the basis of laws, norms and rules. In compliance with the purpose of the analysis. The findings of the research suggest that Brand Rights can potentially be used as collateral for bank credit guarantees in compliance with the relevant legal requirements, but there are no specific laws and regulations that explicitly govern brands used as collateral for bank credit and, as a result, many banks in Indonesia have not been able to consider brands as collateral for bank credit guarantees.

scholarly journals Corporate green investment imperative and risk of a credit crunch in Poland

2021 ◽  
Vol 2021 (154) ◽  
pp. 233-248
Author(s):  
Irena PYKA ◽  
◽  
Jan PYKA ◽  
Keyword(s):  
Global Economy ◽  
Banking Sector ◽  
Credit Rating ◽  
Banking System ◽  
Bank Loans ◽  
Bank Loan ◽  
Credit Crunch ◽  
The European Union ◽  
Social Implication ◽  
Polish Economy

Purpose: The main subject of the article is a phenomenon that is increasingly common in countries of the global economy referred to as the so-called credit crunch. The study analyses the reasons that favour the escalation of risk of a credit crunch in the banking systems. The main objective of the article is to expose them as widely as possible, combining it with verification of the determinants of a credit crunch. Design approach: The empirical research conducted in this study focuses on the Polish banking system. For the first time the credit crunch was observed there in the second half of 2008. It was then that lending to households decreased by 25% and to enterprises by as much as 33%. In the Polish banking system, a drop in the volume of loans to enterprises has been observed for a long time, favouring the increase in risk of a credit crunch. Findings: The article evaluates the potential risk of a credit crunch in the Polish banking system pointing out their links resulting from the implementation of the new climate policy in the European Union as well as the COVID-19 pandemic. This is caused by the fact that during the COVID-19 crisis, credit rating of Polish enterprises decreased significantly, causing partial restrictions or even elimination of bank loan in industries threatened by the crisis. Research implication: The Polish economy is facing a significant challenge of meeting the EU criteria for limiting CO2 emissions, which will force domestic enterprises to invest considerably in environmental protection and will increase their demand for debt financing, including bank loans. Banks are preparing for green lending to the Polish economy which signifies a strong transition of loans to investments which meet the taxonomy criteria and are therefore subject to climate objectives. Practical and social implication: Industry risk will determine lending of Polish enterprises under the conditions of the European Green Deal. Green financing of investments of Polish enterprises is therefore becoming a significant potential cause of increasing risk of a credit crunch in the Polish banking sector. Originality/value: Presentation of the enterprise credit dilemmas in the conditions of financial instability of the global economy in the perspective of credit-crunch in Poland is a novel, original and contemporary subject. The diagnosis of the determinants of this threat has facilitated their positioning relatively to the risk of credit-crunch in the Polish banking sector. The results of this analysis underline the risks in this sector and the consequences of introducing European taxonomy of green investments as factors limiting credit actions and enterprise credits in banks.

Discretionary Accruals in Italian Private Firms and Non-Linear Bank Loan Granting

2017 ◽  
pp. 83-99
Author(s):  
Elisabetta Mafrolla ◽  
Viola Nobili
Keyword(s):  
Financial Reporting ◽  
Banking System ◽  
Regulatory System ◽  
Discretionary Accruals ◽  
Bank Loans ◽  
Bank Loan ◽  
Banking Union ◽  
Private Firms ◽  
European Banking Union

This paper investigates whether and at what extent private firms reduce the quality of their accruals in order to signal a better portrait to the bank and obtain new or larger bank loans. We measure earnings discretionary accruals of a sample of Italian private firms, testing whether new and larger bank loans are associated with a higher (lower) quality of earnings in borrowers' financial reporting. We study bank loan levels and changes and how they impact discretionary accruals and found that, surprisingly, private firms' discretionary accruals are systematically positively affected by an increase in bank loans, although they are negatively affected by the credit worthiness rating assigned to the borrowers. We find that the monitoring role of the banking system with regard to the adoption of discretionary accruals is effective only when the loan is very large. This paper may have implications for policy-makers as it contributes to the understanding of the shortcomings of the banking regulatory system. This is an extremely relevant issue since the excessive amount of non-performing loans held by Italian banks recently threatened the stability of the European Banking Union as a whole.

scholarly journals Only the brave: improving self-rationing efficiency among discouraged Swiss SMEs

2021 ◽  
Author(s):  
Reto Wernli ◽  
Andreas Dietrich
Keyword(s):  
Unique Feature ◽  
Bank Loans ◽  
The Self ◽  
Bank Loan ◽  
Firm Characteristics ◽  
Policy Makers ◽  
Banking Market ◽  
Application Procedure ◽  
Discouraged Borrowers ◽  
New Evidence

AbstractWe conduct a survey among 1922 Swiss SMEs to analyze their access to bank loans. Credit-constrained SMEs are six times more likely to be discouraged than rejected. The most dominant reasons for being discouraged are too high collateral requirements, cumbersome application procedure, and the expectation of being turned down. Through a unique feature in the Swiss banking market, we also find new evidence for the importance of a strong firm–bank relationship. We challenge the assumption that discouraged borrowers are very similar to rejected borrowers. Our results indicate that the group of discouraged borrowers is more similar to the denied borrowers than to the group of approved borrowers, but only with respect to firm characteristics. For variables describing business development and firm–bank relationship, discouraged SMEs have less in common with credit-constrained firms than with their unconstrained counterparts. Even with a conservative prediction, about 60% of the discouraged firms would have obtained a bank loan if they had applied for one. The self-rationing mechanism observed is thus rather inefficient, and banks and policy makers should think about how to foster SMEs’ courage to apply for the bank loans they need.

Determinants of commercial bank loan and advance disbursement: the case of private Ethiopian commercial banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tekeste Birhanu ◽  
Sewunet Bosho Deressa ◽  
Hossein Azadi ◽  
Ants-Hannes Viira ◽  
Steven Van Passel ◽  
...  
Keyword(s):  
Credit Risk ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Inflation Rate ◽  
Bank Loans ◽  
Bank Loan ◽  
Portfolio Investment ◽  
Negative Effects ◽  
Content Type ◽  
Lending Rate

PurposeThis paper aimed to investigate the determinants of loans and advances from commercial banks in the case of Ethiopian private commercial banks.Design/methodology/approachThe study randomly selected seven commercial banks to represent the population stratified on their asset, deposit and paid-up capital amounts. The study utilized an unbalanced panel data model as each bank started operation at a different period of time and considered the period 1995–2016 for secondary details.FindingsThe findings showed that the deposit size, credit risk, portfolio investment, average lending rate, real gross domestic product (GDP) and inflation rate had significant and optimistic effects on the lending and advancement of private commercial banks. On the contrary, liquidity ratio had significant and negative effects on private commercial bank loans and advances. Finally, the study forwarded a feasible recommendation for concerned organs to focus on deposit size, credit risk, portfolio investment, average lending rate, real GDP, inflation rate and liquidity ratio. The results of this study will help banking industry policymakers and planners understand how to minimize inflation and unemployment by improving development and sustainable economic growth.Originality/valueThe findings of this study can also affect the general attitudes of a society by increasing knowledge and improve the quality of life for the general public.

Bank Credit Risk Analysis and Bank Credit Rating

2020 ◽  
pp. 275-348
Author(s):  
Terence M. Yhip ◽  
Bijan M. D. Alagheband
Keyword(s):  
Risk Analysis ◽  
Credit Risk ◽  
Credit Rating ◽  
Bank Credit ◽  
Credit Risk Analysis
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