Are Smes More Confortable With Small Domestic Lenders? (I -The Literature)
Small and medium enterprises (SMEs) are recognized having an important role in economic development, but this recognition doesnâ€(tm)t resolve the essential problems of the SME sector. We found that one of these are the problems of insufficient or inadequate funding, the lack of availability of financial institutions or private equity investors to meet the SMEs financing requirements. The need for financing of SMEs is predominantly covered by bank loans, but it is difficult to say if this demand finds an appropriate offer, in amount and structure. Thus, it is important to understand if the role of lending techniques and organizational structures of the banks, types and origin of the owners (state, private, domestic or foreign) or the size and the market power (large, small, local, or niche banks) individualizes the banks offer and if the banks know the best way to mitigate the demand and supply constraint. Even though the traditional view explains the strategic predisposition of large banks to finance their clients(by default large clients, corporations) through transactional lending and, and local/domestic banks use the relationship lending- suitable to small customers (SMEs), however, the more recent opinions show that the large international banks use a combination of methods and techniques to gain favorable position on SMEs segments.
Volume (Year): 1 (2012)
Issue (Month): 1 (July)
|Contact details of provider:|| Postal: Universitatii str. 1, Office F209, 410087 Oradea, Bihor|
Fax: 004 0259 408409
Web page: http://anale.steconomiceuoradea.ro/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Allen N. Berger & Gregory F. Udell, 2002.
"Small Business Credit Availability and Relationship Lending: The Importance of Bank Organisational Structure,"
Royal Economic Society, vol. 112(477), pages F32-F53, February.
- Allen N. Berger & Gregory F. Udell, 2001. "Small business credit availability and relationship lending: the importance of bank organizational structure," Finance and Economics Discussion Series 2001-36, Board of Governors of the Federal Reserve System (U.S.).
- Ginés Hernández-Cánovas & Pedro Martínez-Solano, 2010. "Relationship lending and SME financing in the continental European bank-based system," Small Business Economics, Springer, vol. 34(4), pages 465-482, May.
- Petersen, Mitchell A & Rajan, Raghuram G, 1997.
"Trade Credit: Theories and Evidence,"
Review of Financial Studies,
Society for Financial Studies, vol. 10(3), pages 661-91.
- Mitchell A. Petersen & Raghuram G. Rajan, . "Trade Credit: Theories and Evidence," CRSP working papers 322, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
- Mitchell A. Petersen & Raghuram G. Rajan, 1996. "Trade Credit: Theories and Evidence," NBER Working Papers 5602, National Bureau of Economic Research, Inc.
- Cressy, Robert & Olofsson, Christer, 1997. "European SME Financing: An Overview," Small Business Economics, Springer, vol. 9(2), pages 87-96, April.
- Daniel BĂDULESCU, 2010. "SMEs Financing: the Extent of Need and the Responses of Different Credit Structures," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 7(7(548)), pages 25-36, July.
- Jeremy C. Stein, 2002. "Information Production and Capital Allocation: Decentralized versus Hierarchical Firms," Journal of Finance, American Finance Association, vol. 57(5), pages 1891-1921, October.
- Badulescu Daniel & Petria Nicolae, 2011. "Collateral'S Importance In Smes Financing: What Is The Banks' Response? Some Evidence For Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 256-260, July.
- Ralph de Haas & Ilko Naaborg, 2005. "Does Foreign Bank Entry Reduce Small Firms' Access to Credit? Evidence from European Transition Economies," DNB Working Papers 050, Netherlands Central Bank, Research Department.
When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2012:i:1:p:493-499. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catalin ZMOLE)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.