IDEAS home Printed from https://ideas.repec.org/a/ids/ijesbu/v20y2013i4p481-496.html
   My bibliography  Save this article

Do guarantee banks mitigate credit restrictions for SMEs?

Author

Listed:
  • Anke Valentin
  • Thomas Henschel

Abstract

German guarantee banks facilitate the access to bank finance of SMEs with no or not enough valuable collateral by underwriting a certain share of the overall risk of the loan amount. Based on conceptual studies about credit guarantee schemes a unique research approach has been developed to evaluate whether guarantee banks also help to overcome problems of asymmetric information and support the creation of lending relationships. Research findings to date have confirmed the positive impact of guarantee banks on SME lending. By facilitating the granting of loans to SMEs by commercial banks, guarantee banks indeed contribute to a reduction of information asymmetries which is often referred to as a main reason for credit constraints and help to intensify the relationship between banks and borrowers. The findings also provided some indications for a sustainable mitigation of credit constraints for SMEs seeking to borrow funds.

Suggested Citation

  • Anke Valentin & Thomas Henschel, 2013. "Do guarantee banks mitigate credit restrictions for SMEs?," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 20(4), pages 481-496.
    • Handle: RePEc:ids:ijesbu:v:20:y:2013:i:4:p:481-496
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=57203
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lagazio, Corrado & Persico, Luca & Querci, Francesca, 2021. "Public guarantees to SME lending: Do broader eligibility criteria pay off?," Journal of Banking & Finance, Elsevier, vol. 133(C).
    2. Dvouletý Ondřej & Čadil Jan & Mirošník Karel, 2019. "Do Firms Supported by Credit Guarantee Schemes Report Better Financial Results 2 Years After the End of Intervention?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(1), pages 1-20, January.
    3. Hennecke, Peter & Neuberger, Doris & Ulbricht, Dirk, 2017. "The economic and fiscal value of German guarantee banks," Thuenen-Series of Applied Economic Theory 152, University of Rostock, Institute of Economics.
    4. Peter Hennecke & Doris Neuberger & Dirk Ulbricht, 2019. "The economic and fiscal benefits of guarantee banks in Germany," Small Business Economics, Springer, vol. 53(3), pages 771-794, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijesbu:v:20:y:2013:i:4:p:481-496. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=74 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.