Financial fragility and growth prospects: credit rationing during the crisis
This paper analyzes firmsï¿½ difficulties in accessing credit before and during the crisis, by focusing on two of their characteristics: financial fragility and growth prospects. Our econometric analysis indicates that fragile financial conditions were associated with a much higher than average probability of rationing, both before and during the crisis. High rates of growth in sales and investments, in value added per employee and in the propensity to export ï¿½ indicators presumably linked to growth prospects ï¿½ favoured access to credit in the period leading up to the financial crisis; during the crisis, instead, credit rationing was more widespread and less related to firmsï¿½ potential growth. Lending relationships facilitated access to the credit market, especially for firms with better growth prospects; this result is consistent with the hypothesis that the banks which are more involved in firmsï¿½ financing have better information and stronger incentives to use it.
|Date of creation:||Jul 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.bancaditalia.it
More information through EDIRC
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.:
- Guiso, Luigi, 1997.
"High-Tech Firms and Credit Rationing,"
CEPR Discussion Papers
1696, C.E.P.R. Discussion Papers.
- Ferrando, Annalisa & Griesshaber, Nicolas, 2011. "Financing obstacles among euro area firms: Who suffers the most?," Working Paper Series 1293, European Central Bank.
- Accetturo Antonio & Giunta Anna & Rossi Salvatore, 2011.
"The Italian Firms between Crisis and the new Globalization,"
Società editrice il Mulino, issue 1, pages 145-164.
- Antonio Accetturo & Anna Giunta & Salvatore Rossi, 2011. "The Italian firms between crisis and the new globalization," Questioni di Economia e Finanza (Occasional Papers) 86, Bank of Italy, Economic Research and International Relations Area.
- Paolo Del Giovane & Ginette Eramo & Andrea Nobili, 2010.
"Disentangling demand and supply in credit developments: a survey-based analysis for Italy,"
Temi di discussione (Economic working papers)
764, Bank of Italy, Economic Research and International Relations Area.
- Del Giovane, Paolo & Eramo, Ginette & Nobili, Andrea, 2011. "Disentangling demand and supply in credit developments: A survey-based analysis for Italy," Journal of Banking & Finance, Elsevier, vol. 35(10), pages 2719-2732, October.
- Eugenio Gaiotti, 2011. "Credit availability and investment in Italy: lessons from the "Great Recession"," Temi di discussione (Economic working papers) 793, Bank of Italy, Economic Research and International Relations Area.
- Giorgio Gobbi & Enrico Sette, 2012.
"Relationship lending in a financial turmoil,"
Mo.Fi.R. Working Papers
59, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
- Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
- Guiso, Luigi, 2003. "Small business finance in Italy," EIB Papers 10/2003, European Investment Bank, Economics Department.
- Angelini, P. & Di Salvo, R. & Ferri, G., 1998. "Availability and cost of credit for small businesses: Customer relationships and credit cooperatives," Journal of Banking & Finance, Elsevier, vol. 22(6-8), pages 925-954, August.
When requesting a correction, please mention this item's handle: RePEc:bdi:opques:qef_127_12. 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: ()
If references are entirely missing, you can add them using this form.