Evaluation of Collateral Policy on credit Value of firm and Loan Rationing Using Propensity Score Matching (in Persian)

Hadi Heidari () and Gholamreza Keshavarz ()
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Hadi Heidari: Iran
Gholamreza Keshavarz: Iran

Journal of Monetary and Banking Research (فصلنامه پژوهش‌های پولی-بانکی), 2015, vol. 8, issue 25, 331-354

Abstract: Sever spike of non-performing loans coincided with rise in the stock price in recent years, change bank’s credit managers attitudes towards liquid securities such as shares, as a collaterals of facilitates. The purposes of credit managers for changing the policy is attracting companies with higher credit value and ultimately reduce credit rationing for the company. In this paper, by using propensity score matching (PSM), we evaluate the effects of policy changes in credit rating and credit rationing as outcome variables. Our Information, including the data base of one of the private bank entails companies in 1391-1392. Credit rating is the first outcome variable. The second outcome variable is ratio of facilities to each company to total bank facilities as an indicator of credit rationing in the bank. Treated or program variable is various collaterals such as liquid and illiquid. The control group is a group that has illiquid collateral, such as property or equipment and program group has liquid collateral such as stocks, deposits and warranty. Our results show that change in policy does not affect the credit rating. Also, liquid collateral decrease the credit rationing for liquid collateral pledged.

JEL-codes: C40 H43 H81 L25 (search for similar items in EconPapers)
Date: 2015
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