Public guarantees to SME borrowing. A RDD evaluation

Guido de Blasio, Stefania De Mitri, Alessio D'Ignazio, Paolo Finaldi Russo () and Lavinia Stoppani

Journal of Banking & Finance, 2018, vol. 96, issue C, 73-86

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 are mostly used to finance working capital. Finally, the paper provides inference for far-from-the-threshold firms.

Keywords: Credit guarantees; Access to credit; Banking (search for similar items in EconPapers)
JEL-codes: G28 L25 O12 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:96:y:2018:i:c:p:73-86

DOI: 10.1016/j.jbankfin.2018.08.003

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