Neither a Borrower Nor a Lender Be! Loan Application and Credit Decision for Young European Firms

Andrea Moro (), Daniela Maresch, Annalisa Ferrando and Julia Barbar
Additional contact information
Andrea Moro: Cranfield University
Daniela Maresch: Johannes Kepler University Linz
Annalisa Ferrando: European Central Bank
Julia Barbar: Cranfield University

Chapter 2 in Access to Bank Credit and SME Financing, 2017, pp 29-58 from Palgrave Macmillan

Abstract: Abstract We investigate the impact of banks’ capability to recover a loan on firms’ propensity to apply for credit and on banks’ propensity to lend, looking at firms from eleven European countries. Our findings suggest that banks’ recovery rates negatively affect firms’ decisions to apply for credit but not banks’ decision to provide credit. We also find that the role of recovery rates differs in economically weak and strong contexts: high recovery rates discourage borrowers only in economically strong countries and have a positive impact on banks’ lending decisions in economically weak countries.

Keywords: Credit access; Judicial system; Property rights; Creditor protection (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:pmschp:978-3-319-41363-1_2

Ordering information: This item can be ordered from
http://www.palgrave.com/9783319413631

DOI: 10.1007/978-3-319-41363-1_2

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().