Despite their significant contribution to GDP and employment, SMEs face constraints in accessing finance in Pakistan. To motivate banks to lend to SMEs, the State Bank of Pakistan introduced a "Credit Guarantee Scheme for Small and Rural Enterprises" in 2010. However, the response to the scheme...

This paper investigates the effectiveness of public credit guarantee programs and interest-support programs for SMEs (small and medium enterprises). First, assuming that there is an imperfect information structure in the SME loan market, we analyze how SME support financial programs affect the...

Despite their significant contribution to GDP and employment, SMEs face constraints in accessing finance in Pakistan. To motivate banks to lend to SMEs, the State Bank of Pakistan introduced a "Credit Guarantee Scheme for Small and Rural Enterprises" in 2010. However, the response to the scheme...

SMEs have a great contribution in China’s economic expansion. However, the financing predicament currently faced by SMEs constitutes a great bottleneck for their development. Banks are reluctant to lend to them, mainly due to the lack of collateral and their poor capability in pricing risk....

Difficulty in accessing finance is one of the critical factors constraining the development of small and medium-sized enterprises (SMEs) in Asia. Owing to their significance to national economies, it is important to find ways to provide SMEs with stable finance. One efficient way to promote SME...

This paper provides a brief explanation of the Japanese public credit guarantee system and analyzes what role it played during the global financial crisis. The author conducted a questionnaire survey of small and medium-sized enterprises (SMEs) in Aichi Prefecture, the prefecture most seriously...

This paper studies the effects of the bank capital requirements imposed by the European authorities in October 2011 on loan collateral and personal guarantees usage to enhance capital ratios. We use detailed information on the loan contracts granted by a representative Spanish bank and several...

Small and medium-sized enterprises (SMEs) have difficulties in accessing finance because of information asymmetry and a lack of collateral. A credit guarantee scheme is a suitable method to unlock lending to SMEs; however, it involves SMEs paying a fee, which needs to account for their risk. The...

This study examines how small and medium-size enterprises' (SMEs') lending and credit guarantee affect Korean banks' efficiency, by employing the stochastic frontier approach on 14 banks over the period 2001-2010. When lending increases to SMEs, the findings indicate that banks' cost efficiency...

Credit Guarantee Schemes (CGSs) are a widely used policy tool to ease access to finance by SMEs, which, in some countries, ramped up in the aftermath of the 2008-09 financial crisis. The present study aims to improve understanding about the role, impact and sustainability of CGSs, by...