BANK SIZE, RELATIONSHIP LENDING AND SME FINANCING: EVIDENCE FROM BANGLADESH

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F16%3A43874382" target="_blank" >RIV/70883521:28120/16:43874382 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

BANK SIZE, RELATIONSHIP LENDING AND SME FINANCING: EVIDENCE FROM BANGLADESH

Original language description

This paper examines the effect of bank size on relationship lending and how relationship lending can affect credit availability, interest rates and collateral to SMEs in the context of Bangladesh. Our empirical results suggest that SMEs with a long-term relationship with small banks have more access to finance than from large banks. However, we did not find any evidence that long-term relationship with small banks can reduce interest rates or collateral requirements for SMEs. We find evidence though that a stronger and much more exclusive relationship with a small bank can reduce the interest rates for SMEs. This mixed evidence suggests that small banks do not have full comparative advantage in processing soft information, but large banks in Bangladesh may have different lending techniques to extend loans to SMEs with similar interest rates and collateral requirements as like as small banks. Furthermore, we find evidence that small banks are giving priority to both long-term relationship and collateral requirement for SME credit risk than large banks.

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AE - Management, administration and clerical work

OECD FORD branch

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Project

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Continuities

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Actual problems of economics

ISSN

1993-6788

e-ISSN

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Volume of the periodical

2016

Issue of the periodical within the volume

9

Country of publishing house

UA - UKRAINE

Number of pages

14

Pages from-to

294-307

UT code for WoS article

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EID of the result in the Scopus database

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