Did the Crisis Induce Credit Rationing for French SMEs?

Kremp, Élisabeth; Sevestre, Patrick

doi:10.2139/ssrn.2179546

Cited by 34 publications

(18 citation statements)

References 46 publications

(38 reference statements)

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“…We closely follow Kremp and Sevestre (2013) to present the disequilibrium model in the case of the credit market:…”

Section: The Disequilibrium Modelmentioning

confidence: 99%

“…The interest rate is not considered in the supply function following Ogawa and Suzuki (2000), Atanasova and Wilson (2004), Shikimi (2005), and Kremp and Sevestre (2013). In fact, it is considered that in a context of credit restrictions, banks first decide on the amount they are willing to lend and then bargain the interest rate with firms.…”

Section: Cost Of Bank Creditmentioning

confidence: 99%

“…In this paper, we follow the same econometric strategy considered in Kremp and Sevestre (2013) and include in the analysis a set of lagged terms of the dependent variable, calculated within the firms' sector and dimension category, imposing that the estimated coefficient is the same in both the credit demand and credit supply equations. This is equivalent to assume the relation NL it ¼ L it À ð1 À d g ÞL itÀ1 , where d g is a reimbursement rate assumed to be constant over time and common to firms within a given sector and dimension category.…”

Section: New Loansmentioning

confidence: 99%

“…Ogawa and Suzuki (2000), Atanasova and Wilson (2004), Shikimi (2005) and Carbo-Valverde et al (2009) estimated disequilibrium models to identify the presence of credit rationing in the economy. More recently, Kremp and Sevestre (2013) considered this methodology to analyze the determinants of credit demand and credit supply for French small and medium-sized enterprises (SMEs) and found that, even though banks adopted tighter standards in credit approval, French firms were not significantly affected by credit rationing, even after 2008.…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, it is expected that SMEs are potentially the most affected by credit restrictions. For that purpose, we consider a methodology that allows to simultaneously estimate credit supply and credit demand functions, assuming that the credit market may be in disequilibrium, as modeled in Kremp and Sevestre (2013).…”

Section: Introductionmentioning

confidence: 99%

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Credit rationing for Portuguese SMEs

Farinha

Félix

2015

Finance Research Letters

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Available online xxxx JEL classification: C31 E44 E51 G21 a b s t r a c tThis study examines the importance of credit demand and credit supply-related factors in explaining the evolution of credit granted to Portuguese SMEs. The results suggest that the interest rate is a strong driver of SMEs' demand for bank loans, as well as their internal financing capacity. On the other hand, credit supply mostly depends on the firms' ability to generate cash-flows and reimburse their debt, and on the amount of collateral. The model was estimated for the period between 2010 and 2012. The results suggest that a considerable fraction of Portuguese SMEs were affected by credit rationing in this period.

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“…We closely follow Kremp and Sevestre (2013) to present the disequilibrium model in the case of the credit market:…”

Section: The Disequilibrium Modelmentioning

confidence: 99%

Section: Cost Of Bank Creditmentioning

confidence: 99%

Section: New Loansmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Credit rationing for Portuguese SMEs

Farinha

Félix

2015

Finance Research Letters

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Short-term financial constraints and SMEs’ investment decision: evidence from the working capital channel

Nicolas

2021

Small Bus Econ

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Is there a gender effect on the cost of bank financing?

Mascia

Rossi

2017

Journal of Financial Stability

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In this paper, we address the question of whether the gender of a firm’s leader affects the cost of bank funding faced by small and medium enterprises in Europe. Using a large sample of observations of non-financial firms, during the years 2009–2013, we empirically test for the presence of discrimination, comparing female-led and male-led firms. After controlling for a rich set of variables and addressing potential endogeneity, our results show that i) female-led enterprises are more likely to face worse price conditions for bank financing compared to their male-led counterparts and, ii) firms whose leadership changes from female to male are more likely to benefit from an improvement in interest rate levels. This evidence is robust to different model specifications and various methodological approaches. The existence of such bias in the credit markets highlights the need of policy measures addressing female-led businesses, thus reducing their bank financing burdens and enhancing their entrepreneurial opportunities

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Did the Crisis Induce Credit Rationing for French SMEs?

Abstract: ‡ The views expressed in this paper do not necessarily reflect those of the Banque de France. We would like to thank the anonymous referee as well as René Garcia and Timo Wollmershäuser for their helpful comments and suggestions.

Cited by 34 publications

References 46 publications

Credit rationing for Portuguese SMEs

Credit rationing for Portuguese SMEs

Short-term financial constraints and SMEs’ investment decision: evidence from the working capital channel

Is there a gender effect on the cost of bank financing?

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