The Bank Financing of Small Unlisted Firms in the UK: An Analysis of Recent Conflicts

Kevin Keasey and Robert Watson
Additional contact information
Kevin Keasey: University of Leeds
Robert Watson: University of Leeds

Journal of Entrepreneurial Finance, 1995, vol. 4, issue 2, 143-63

Abstract: This paper examines the characteristics of UK small firm bank finance and the causes of the frequently strained relationship between small firms and banks in the UK. Debt, credit rationing, and call option problems under the UK system are examined. The bank’s solutions including the potentially harmful “secured overdraft system” are then considered. It is argued that the majority of solutions tried by the banking system led to a heightened conflict of interest between small firms and banks during the recent recession due to the banks’ loan restructuring to avoid unnecessary risk.

Keywords: Financing; Bank Financing; Bank; Small Firms; Unlisted Firms; UK (search for similar items in EconPapers)
JEL-codes: G32 L25 (search for similar items in EconPapers)
Date: 1995
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://jefsite.org/RePEc/pep/journl/jef-1995-04-2-d-keasey.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pep:journl:v:4:y:1995:i:2:p:143-63

Access Statistics for this article

More articles in Journal of Entrepreneurial Finance from Pepperdine University, Graziadio School of Business and Management Contact information at EDIRC.
Bibliographic data for series maintained by Craig Everett ().