Collateral and SME fi nancing in Bangladesh: an analysis across bank size and bank ownership types

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F16%3A43874340" target="_blank" >RIV/70883521:28120/16:43874340 - isvavai.cz</a>

Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Collateral and SME fi nancing in Bangladesh: an analysis across bank size and bank ownership types

Popis výsledku v původním jazyce

We examine the issue of pledging collateral and its eff ect on access to credit, interest rates and credit risk of SMEs fi nancing in Bangladesh with respect to bank size. We also examine the collateral classifi cation (fi xed assets collateral, personal guarantee and third-party guarantee) by bank ownership types to fi nd what types of collateral are preferred by public, private and foreign banks in Bangladesh for lending to fi rms. In addition to that, we examine whether collateral requirements are diff erent between large and small banks as they have diff erent incentives for collateral based lending. Our empirical results suggest that small banks have no additional incentives to provide loans based on the collateral security than large banks. Hence, we did not fi nd any evidence that collateral can increase access to credit for SMEs from small banks. Similarly, we also did not fi nd any eff ect of collateral on interest rates or collateral security can lower the default rates of the SME loans and the results are similar regardless bank size. With regards to collateral segmentation across bank ownership types and bank size, our regression's results suggest that each type of banks has its own preferences about collateral requirements while lending to fi rms. Th erefore, we conclude that depending on bank internal policy commercial banks ask for diff erent collateral, which comply with the best interests of banks

Název v anglickém jazyce

Collateral and SME fi nancing in Bangladesh: an analysis across bank size and bank ownership types

Popis výsledku anglicky

We examine the issue of pledging collateral and its eff ect on access to credit, interest rates and credit risk of SMEs fi nancing in Bangladesh with respect to bank size. We also examine the collateral classifi cation (fi xed assets collateral, personal guarantee and third-party guarantee) by bank ownership types to fi nd what types of collateral are preferred by public, private and foreign banks in Bangladesh for lending to fi rms. In addition to that, we examine whether collateral requirements are diff erent between large and small banks as they have diff erent incentives for collateral based lending. Our empirical results suggest that small banks have no additional incentives to provide loans based on the collateral security than large banks. Hence, we did not fi nd any evidence that collateral can increase access to credit for SMEs from small banks. Similarly, we also did not fi nd any eff ect of collateral on interest rates or collateral security can lower the default rates of the SME loans and the results are similar regardless bank size. With regards to collateral segmentation across bank ownership types and bank size, our regression's results suggest that each type of banks has its own preferences about collateral requirements while lending to fi rms. Th erefore, we conclude that depending on bank internal policy commercial banks ask for diff erent collateral, which comply with the best interests of banks

Druh

J_x - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)

CEP obor

AE - Řízení, správa a administrativa

OECD FORD obor

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Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2016

Kód důvěrnosti údajů

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

Název periodika

Journal of International Studies

ISSN

2071-8330

e-ISSN

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Svazek periodika

9

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

PL - Polská republika

Počet stran výsledku

15

Strana od-do

112-126

Kód UT WoS článku

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EID výsledku v databázi Scopus

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