An Assessment of Bank Lending to UK SMEs in the wake of the crisis

Armstrong, Angus; Davis, E. Philip; Liadze, Iana; Rienzo, Cinzia

doi:10.1177/002795011322500106

Cited by 20 publications

(27 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…(Note their paper goes to BSD2010, which in our terms refers to 2009.) consistent with a reduction in funds for investment, for example through constraints on credit as identified in Armstrong et al (2013) than an exogenous shock to demand.…”

Section: Net Job Creationmentioning

confidence: 64%

“…By contrast 2010 and 2011 are years of unusually low churn, continuing the low gross job creation of downturn period. This could reflect ongoing reduced credit through restrictions on the availability of SME bank finance to 2012 as identified in Armstrong et al (2013). The slowdown in net creation (middle line) in 2008 is accounted for by the fall in entry (first block above zero).…”

Section: Net Job Creationmentioning

confidence: 99%

See 1 more Smart Citation

How Dynamic is the Private Sector? Job Creation and Insights from Workplace-Level Data

Butcher

Bursnall²

2013

Natl. Inst. econ. rev.

View full text Add to dashboard Cite

Private sector employment rose by over a million in the past three years. Commentators often interpret this number – which is a net figure – as ‘job creation’. But how many jobs really are created each year, and conversely how many are lost? How has this changed with the downturn and what does it imply for the recovery?This article uses findings from business and workplace-level data to map i) job creation and destruction over recent years, ii) its components in accounting terms, iii) the relative contribution by firms of different size and age, and iv) the reallocation of resource between firms and to workplaces within firms. There are four main points: a)Job churn far outweighs net change. Before the downturn, an average of 4.0 million jobs were created each year and a slightly smaller number lost (3.7m), resulting in a net increase of about 300,000 per year.b)Most job creation (over 70 per cent) is within existing firms; but within that, over a third comes from the creation of new workplaces set up within those firms.c)The net reduction in jobs in 2008–11 was not, in contrast to earlier recessions, due to higher rates of job loss; instead it reflects a sustained period of lower job creation in new workplaces, especially in SMEs (figure 1). This is consistent with ongoing credit constraints hitting SMEs particularly hard, as discussed in Armstrong et al. (2013), or could simply be in line with lack of confidence to invest at this time.d)Looking at the years 2008–11 individually, the downturn begins with reduced levels of entry, followed by a peak of job destruction in 2009 in line with reduced aggregate demand, and then a continuation of low levels of entry of new SMEs, and lower levels of destruction too (figure 2).

show abstract

Section: Net Job Creationmentioning

confidence: 64%

Section: Net Job Creationmentioning

confidence: 99%

How Dynamic is the Private Sector? Job Creation and Insights from Workplace-Level Data

Butcher

Bursnall²

2013

Natl. Inst. econ. rev.

View full text Add to dashboard Cite

show abstract

“…In a detailed investigation of the SME Finance Monitor, Armstrong et al (2013), found that rejection rates for both overdrafts and term loans were significantly higher in the period from 2008-9 onwards, even controlling for risk factors, which is indicative of constraints to the supply of credit.…”

Section: Surveys Of Businessesmentioning

confidence: 99%

The Financial Crisis, Bank Lending and UK Productivity: Sectoral and Firm-Level Evidence

Riley

Rosazza-Bondibene

Young

2014

Natl. Inst. econ. rev.

View full text Add to dashboard Cite

This paper assesses the evidence and investigates some of the mechanisms by which the most recent banking sector crisis might have affected the supply side of the UK economy. We find clear evidence that the banking sector crisis affected credit supply to businesses and caused bank lending to decline. But we do not find much evidence of the heterogeneity in performance between different industrial sectors that would have been expected if banking sector impairment had been the key factor holding back productivity growth. Consistent with this we do not find strong evidence that a lack of reallocation of resources across businesses has been a substantial drag on productivity growth.

show abstract

“…One of frequently discussed topics by many authors is SMEs' credit risk in relation to their need for external financing via bank loans (Armstrong et al, 2013;Beck, 2013;Belas et al, 2014;Dobeš et al, 2017;Kozubikova et al, 2015Kozubikova et al, , 2017Kljucnikov et al, 2016;Yasnolob, & Radionova, 2017;and other authors).…”

Section: Introductionmentioning

confidence: 99%

Evaluation of important credit risk factors in the SME segment

Dvorský

Schönfeld

Kotásková

et al. 2018

Journal of International Studies

View full text Add to dashboard Cite

The aim of the paper is to define important credit risk factors in the SME segment, find out how entrepreneurs evaluate these factors, and quantify the differences in their evaluation based on the enterprise's age, gender and attained education level. An empirical research was conducted in relation to the defined aim. 1,141 responses were received by means of the online questionnaire. To process the results, the two-sample t-test was used. Statistical tools such as histogram, Q-Q graph, z-test, and goodness-of-fit tests were applied to verify the assumptions. The results indicate that small and medium-sized enterprises perceive credit risk more intensively in comparison with the pre-crisis era. It was also discovered that the SMEs' knowledge of credit criteria is somewhat low. Entrepreneurs also state that banks' credit criteria are not very transparent. Based on the findings, the length of operating a business has a significant influence on the evaluation of credit risk factors. Experienced entrepreneurs, meaning those operating a business for over 10 years, have a more intense perception of the significance of credit risk, they also have better knowledge of banks' credit criteria, and view credit criteria as more transparent than beginner entrepreneurs.

show abstract

An Assessment of Bank Lending to UK SMEs in the wake of the crisis

Cited by 20 publications

References 9 publications

How Dynamic is the Private Sector? Job Creation and Insights from Workplace-Level Data

How Dynamic is the Private Sector? Job Creation and Insights from Workplace-Level Data

The Financial Crisis, Bank Lending and UK Productivity: Sectoral and Firm-Level Evidence

Evaluation of important credit risk factors in the SME segment

Contact Info

Product

Resources

About