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Models of credit limit-setting for companies as means of encouraging competitiveness

Natalia Vladimirovna Gryzunova (), Victoria Ivanovna Pyatanova (), Viktoriya Valeryevna Manuylenko () and Konstantin Vasilievich Ordov ()
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Natalia Vladimirovna Gryzunova: Plekhanov Russian University of Economics, Russian Federation
Victoria Ivanovna Pyatanova: Plekhanov Russian University of Economics, Russian Federation
Viktoriya Valeryevna Manuylenko: North-Caucasus Federal University, Russian Federation
Konstantin Vasilievich Ordov: Plekhanov Russian University of Economics, Russian Federation

Entrepreneurship and Sustainability Issues, 2019, vol. 7, issue 1, 615-625

Abstract: Monetary policy deals with a number of issues including improvement of the national business competitiveness, increasing the volume of internal credits, ensuring stability and sufficient reinvestments into the real sector of the economy. On the one hand, banks issue credits relying on the index of competitiveness. On the other hand, banks should encourage the growth of the organization’s competitiveness. These tasks are interconnected, but the latter one is hardly considered by researchers. Administration of companies’ competitiveness is a set of financial methods aimed at modifying the activity of regulatory institutions so that they can help companies achieve the required financial criteria. In order to solve the trilemma of competitiveness, monetary policy and credit limit-setting for a group of companies, robust management is necessary. Currently, banks have sufficient liquidity but prefer low credit exposure. Such an approach is conditioned by the recent financial shocks, dissatisfaction and disappointment with the existing methodology, which has not protected banks from risks. It leads to the necessity for banks to introduce credit limits for each company. The authors suggest a model of adjustment of competitiveness drivers for the real sector of the economy and ways to determine credit limits in order to support competitiveness.

Keywords: monetary policy; transmission mechanism; transmission investment channel; competitiveness; general equilibrium model; structured product (search for similar items in EconPapers)
JEL-codes: O10 O14 O31 O35 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:7:y:2019:i:1:p:615-625

DOI: 10.9770/jesi.2019.7.1(43)

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