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Credit rationing for Portuguese SMEs

Luísa Farinha and Sónia Félix

Finance Research Letters, 2015, vol. 14, issue C, 167-177

Abstract: This 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.

Keywords: Credit rationing; Bank loans; Financial crisis; SMEs; Disequilibrium model (search for similar items in EconPapers)
JEL-codes: C31 E44 E51 G21 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1016/

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