Credit rationing for Portuguese SMEs
Luísa Farinha and
Finance Research Letters, 2015, vol. 14, issue C, 167-177
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)
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Journal Article: Credit rationing for Portuguese SMEs (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:14:y:2015:i:c:p:167-177
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