Credit rationing for Portuguese SMEs

Farinha, Luísa; Félix, Sónia

doi:10.1016/j.frl.2015.05.001

Cited by 41 publications

(23 citation statements)

References 15 publications

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“…Beck et al (2006) used the World Business Environment Survey (WBES) and showed that a high interest rate is the most important financing obstacle for SMEs among 12 examined financing obstacles. Farinha and Felix (2015) found that banks with lower interest rates received more loan applications as compared to banks with higher interest rates in Portugal. A study also showed that higher interest rate is one of the most significant factors for SMEs causing loan default as the higher price of loans increases the debt burden for SMEs (Chaibi and Ftiti, 2015).…”

Section: H5: Availability Of Collateral Increases Access To Financementioning

confidence: 99%

Determinants of SME Finance: Evidence from Three Central European Countries

Rahman

Belás

2017

Review of Economic Perspectives

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This paper explores the determinants of access to finance for small and medium enterprises (SMEs) in the context of three Central European countries: Czech Republic, Slovak Republic, and Hungary. The data set of the research is obtained from the BEEPS survey, which is conducted by the World Bank and the European Bank for Reconstruction and Development. This paper empirically analyses firms not only from the SMEs point of view, but also shows results for micro, small and medium enterprises separately. Additionally, we have analysed the determinants of access to finance for SMEs at each country level for an in-depth understanding of country-level variations in SME financing. The results indicate that micro firms and firms owned and operated by women are experiencing a shortage of credits from banks. On the other hand, we found a positive relationship between the pledge of collateral and access to finance. With respect to the medium firms, we found evidence that innovative firms have a larger amount of credit from banks. The empirical results also suggest that the loan size increases as the interest rates increase in particular for SMEs on the whole and for micro-firms, although the interest rate is in a negative relationship with the loan size in Czech Republic.

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Section: H5: Availability Of Collateral Increases Access To Financementioning

confidence: 99%

Determinants of SME Finance: Evidence from Three Central European Countries

Rahman

Belás

2017

Review of Economic Perspectives

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“…Casey et al [5] use Euro area firm-level data since the recent financial crisis, as opposed to credit financing, and smaller, self-rationing borrowers are more likely to apply for grant finance. Farinha and Félix [6] examine the importance of credit demand and credit-supply-related factors in explaining the evolution of credit granted to Portuguese SMEs. e results suggest that credit supply mostly depends on the firms' ability to generate cash flows and reimburse their debt, and on the amount of collateral.…”

Section: Introductionmentioning

confidence: 99%

The Impact and Stability Analysis of Commercial Banks’ Risk Preference on SMEs’ Credit Financing Based on DSGE Model

Gao

Hao

et al. 2021

Mathematical Problems in Engineering

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As an important driving force for China’s economic transformation and upgrading, the problems of financing difficulties and expensive financing for SMEs have become increasingly prominent. The main objective of this paper was to analyze the impact of financial intermediary departments’ risk preference on corporate finance. Under the revised DSGE framework, this paper discusses the impact and stability analysis of commercial banks’ risk preferences on SMEs’ financing. The results show that positive interest rate shocks inhibit commercial banks’ credit to SMEs, and with the increasing weight of commercial banks’ risk preference for default rate, the trend of credit repression will be intensified.

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“…The interest rate associated with commercial loans is also the main hurdle for entrepreneurial SMEs, and entrepreneurial SMEs are not willing to take advances from banks. Farinha and Félix (2015) established that banks with lower interest rates had received more requests for loans as compared to high interest rates for SMEs. Studies disclosed that high rate of interest discourages SMEs to get credits from banks and other financial institution because the cost of advances are high and has a negative impact upon SMEs performance (Hern andez-C anovas and Koëter-Kant, 2011).…”

Section: Introductionmentioning

confidence: 99%

Determinants of entrepreneurial small and medium enterprises performance with the interaction effect of commercial loans

Khan

Siddique

Sarwar

et al. 2020

APJIE

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Purpose The purpose of this study is to investigate the interaction effect of commercial loans in between trade Credit, retain earning, and entrepreneurial small and medium enterprises (SMEs) performance. Design/methodology/approach In this research, the cross-sectional research design was used, and data were collected from 362 SMEs located in Pakistan by using a questionnaire. Correlation and regression analysis was adopted to establish the interaction effect of commercial loans in between trade credits, retain earning and entrepreneurial SMEs performance. Findings The results demonstrated that commercial loans, trade credit and retain earning have a positive relationship with entrepreneurial SMEs performance. The findings also confirmed the interaction effect of commercial loans in between retain earnings, trade credit and entrepreneurial SMEs performance. Originality/value The study examined the association and interaction effect of commercial loans in between retain earnings, trade credit and SMEs performance in the emerging state (Pakistan). So, this is the first time to study the relationship between these variables, which highly contributes to entrepreneurial SMEs literature.

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Credit rationing for Portuguese SMEs

Cited by 41 publications

References 15 publications

Determinants of SME Finance: Evidence from Three Central European Countries

Determinants of SME Finance: Evidence from Three Central European Countries

The Impact and Stability Analysis of Commercial Banks’ Risk Preference on SMEs’ Credit Financing Based on DSGE Model

Determinants of entrepreneurial small and medium enterprises performance with the interaction effect of commercial loans

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