Credit Access in Latin American Enterprises

Presbitero, Andrea F.; Rabellotti, Roberta

doi:10.1057/978-1-349-58151-1_8

Cited by 7 publications

(6 citation statements)

References 51 publications

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“…This work is part of a research project on “Determinants of Firm Performance in LAC: What Does the Micro Evidence Tell Us?” on behalf of the Inter‐American Development Bank, Competitiveness and Innovation Division. A more extensive and earlier version of the paper was published as Presbitero and Rabellotti () in Grazzi et al . ().…”

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confidence: 99%

The Determinants of Firm Access to Credit in Latin America: Micro Characteristics and Market Structure

Presbitero

Rabellotti

2016

Economic Notes

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Due to deregulation and financial liberalization, Latin American countries have recently undertaken bank restructuring and consolidation processes. This paper investigates firm access to credit in the region, focusing on the role of the credit market structure. Through an empirical investigation based on the World Bank Enterprise Survey, we find that access to bank credit is very heterogeneous. On average, smaller and less productive firms are less likely to apply for credit and more likely to be financially constrained. Besides, a high degree of bank penetration and competition is significantly correlated with a lower probability that borrowers are financially constrained. Finally, foreign banks penetration has a negative effect on access to credit particularly in less developed and more concentrated markets, while it has a positive influence in more competitive and financially developed markets.

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confidence: 99%

The Determinants of Firm Access to Credit in Latin America: Micro Characteristics and Market Structure

Presbitero

Rabellotti

2016

Economic Notes

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“…Consistent with the theoretical prediction that an institutional setting that facilitates information-sharing can ease access to finance, empirical evidence suggests that the presence of credit registries is associated with higher demand for credit and lower financing constraints (Presbitero and Rabellotti 2014).…”

Section: Legal Status and Access To Financementioning

confidence: 61%

“…As suggested by Rajan and Petersen (1995), a certain degree of market power might be necessary for banks to invest in lending relationships, especially with informationally opaque firms. Indeed, recent evidence confirms this by showing a negative association between a discouraging credit decision and a bank's market power (Presbitero and Rabellotti 2014).…”

Section: Legal Status and Access To Financementioning

confidence: 82%

“…It is associated with easier access to credit in a competitive business environment where the informational asymmetry issues are not as pronounced, but it ). Interestingly, however, empirical evidence provided by Presbitero and Rabellotti (2014) shows that the presence of foreign banks eases credit constraints when credit markets are more competitive, there is a higher number of bank branches (a measure of bank penetration), and credit registries are in place. By contrast, foreign banks are associated with negative effects on access to credit when markets are more concentrated, there is lower bank penetration, and credit registries do not exist.…”

Section: Legal Status and Access To Financementioning

confidence: 99%

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Engine of Growth?: The Caribbean Private Sector Needs More Than an Oil Change

Sierra,

Ruprah

2016

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The performance of the private sector is crucial for a country's economic growth. Thus, this report revisits the theme of low Caribbean growth, viewed through a macroeconomic lens in the previous "Sclerosis" report, but focuses on a microeconomic perspective: Why is the business sector not functioning well as the engine of that growth? We argue that fine-tuning that engine, as it were, will take more than an oil change. The central hypothesis is that the Caribbean private sector is falling behind because its policy environment hinders rather than promotes dynamic, innovative, and export-oriented businesses. Structural policies that target overall improvements in the environment in which firms operate may have greater returns than just firm- or sector-level interventions in improving the performance of the private sector, and hence overall economic growth. This is counterintuitive for many Caribbean policymakers and commentators who often focus on the needs of existing large firms (foreign or domestically owned) and discuss which sector or industry should be promoted next given the stagnation of the existing sectors.

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“…recursos! internos!(Presbitero!y!Rabellotti,!2014).!En!el!caso!de!empresas!nuevas,!el!60%!del!capital! inicial!corresponde!a!ahorros!familiares!o!personales!(WBES,!2014).!Ante!un!sistema!de!…”

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Financiando el desarrollo productivo de América Latina y el Caribe: Desafíos, políticas y rol del Banco Interamericano de Desarrollo

Prats Cabrera,

Rud,

Ketterer

et al. 2017

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El nivel de acceso al financiamiento constituye un determinante clave de la productividad y el crecimiento de una economía. En América Latina y el Caribe (ALC) se concluye que el nivel de acceso al financiamiento por parte del sector productivo es inferior al de otras regiones e, inclusive, al esperado según las características de los países de ALC. Este se encuentra limitado por tres factores: i) una intermediación bancaria cara y poco eficiente; ii) un bajo desarrollo de mercados de capital y de riesgo; y iii) un marco institucional débil en materia financiera. De acuerdo con la revisión de experiencias internacionales, se identifican dos tipologías de políticas públicas que pueden ser aplicadas para mejorar el acceso al financiamiento: i) las reformas institucionales y normativas para el buen manejo de los riesgos macrofinancieros y el funcionamiento eficiente de los contratos financieros; y ii) las políticas e instrumentos de financiamiento del desarrollo productivo. Respecto a esto último, se señala que la Banca Pública de Desarrollo puede jugar un papel central en la provisión de instrumentos financieros y no financieros –por ejemplo, fondos de crédito, garantías, seguros o asistencia técnica– destinados a segmentos y sectores productivos que, por fallas de mercado del sistema financiero, se encuentran hoy subatendidos. El documento concluye con la identificación de los lineamientos para el apoyo del BID a los países de ALC, tanto en lo que respecta a sus actividades operativas como de investigación.

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Credit Access in Latin American Enterprises

Cited by 7 publications

References 51 publications

The Determinants of Firm Access to Credit in Latin America: Micro Characteristics and Market Structure

The Determinants of Firm Access to Credit in Latin America: Micro Characteristics and Market Structure

Engine of Growth?: The Caribbean Private Sector Needs More Than an Oil Change

Financiando el desarrollo productivo de América Latina y el Caribe: Desafíos, políticas y rol del Banco Interamericano de Desarrollo

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