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Confidi, Piccole Imprese E Banche: Un'Analisi Empirica
[Mutual Loan-Guarantee Societies, Small Firms and Banks: An Empirical Investigation]

Author

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  • Busetta, Giovanni
  • Presbitero, Andrea F.

Abstract

The paper analyzes the relationships between mutual loan-guarantee societies (MLGS), small firms and banks trying to evaluate the role played by the guarantees granted by MLGSs and by different banks on the availability and the cost of credit. We focus on a sample of firms member of a specific MLGS and we run different econometric exercises in order to identify the effects of the interaction between local firms, banks and MLGS on credit rationing, on the cost of credit, and on the time and the number of guarantees required to obtain a line of credit. Our findings suggest a critical relevance of the MLGS guarantees on the local firms’ credit access and conditions. Finally, while the existing evidence points out a reduction in the cost of credit due to MLGSs intermediation, our analysis stresses the heterogeneity of the benefits for local firms, which depends substantially by the guarantees provided by the MLGS and by the reference banks.

Suggested Citation

  • Busetta, Giovanni & Presbitero, Andrea F., 2008. "Confidi, Piccole Imprese E Banche: Un'Analisi Empirica [Mutual Loan-Guarantee Societies, Small Firms and Banks: An Empirical Investigation]," MPRA Paper 7832, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:7832
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    References listed on IDEAS

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    Cited by:

    1. Domenico Scalera & Alberto Zazzaro, 2009. "Do Inter-Firm Networks Make Access to Finance Easier? Issues and Empirical Evidence," Mo.Fi.R. Working Papers 25, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    2. 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).

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    More about this item

    Keywords

    Mutual Loan Guarantee Societies (MLGS); Guarantee; Small business lending; Local banks;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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