Public guarantees on loans to SMEs: an RDD evaluation

Guido de Blasio, Stefania De Mitri (), Alessio D'Ignazio, Paolo Finaldi Russo () and Lavina Stoppani ()
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Stefania De Mitri: Bank of Italy
Lavina Stoppani: Catholic University of Milan

No 1111, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The paper evaluates the impact of the guarantees provided by the Italian scheme Fondo di Garanzia on the access to credit for small and medium enterprises. The study exploits the mechanism that assigns the guarantees, which is based on a scoring system to assess eligibility. By using regression discontinuity techniques, the paper finds that at the threshold between eligible and non-eligible firms, the program has a positive impact on bank loans to firms; however, the scheme has no impact on the interest rate charged by the banks, while it affects positively the likelihood that a firm becomes unable to repay its loans. The guaranteed loans were mostly used to finance working capital. Finally, the paper provides inference for far-from-the-threshold firms.

Keywords: credit guarantees; public guarantees; access to credit; SMEs financing (search for similar items in EconPapers)
JEL-codes: G28 L25 O12 (search for similar items in EconPapers)
Date: 2017-04
New Economics Papers: this item is included in nep-ent and nep-sbm
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1111_17

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