cover image: An interpretation of discouraged borrowers based on relationship lending : Interprétation du lien entre la relation prêteur-emprunteur et les emprunteurs découragés : document de recherche

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An interpretation of discouraged borrowers based on relationship lending : Interprétation du lien entre la relation prêteur-emprunteur et les emprunteurs découragés : document de recherche

20 Aug 2010

The rest of the paper is structured in the following way: Section II presents relevant theory and previous evidence; Section III discusses the data and descriptive statistics; Section IV explains the methodology; Section V provides the results; and Section VI provides the conclusion. [...] Chakravarty and Yilmazer (2005) complements 4 An Interpretation of Discouraged Borrowers Based on Relationship Lending these results using the NSSBF 1998 by showing that the total number of savings accounts and the number of loans at a potential lending institution affect only the application and acceptance rate, but not the cost of financing. [...] In addition to the usual variables, which proxy for the relationship between bank and SME, they include the following variables that describe the relationship between the account manager and the SME: positive experience in the past, obligation to the partner, willingness to inform and stability of the relationship. [...] Of those, both the positive experience and the willingness to inform play an important role in the decision of the bank to award credit. [...] In this analysis we include variables that account for the length of the relationship between the bank and the SME following Petersen and Rajan (1994).
financing economy credit finance science and technology banks business loans risk small business loan small and medium-sized enterprises bank logistic regression loan market small and medium-sized enterprise banks and banking logistic regressions credit rationing banker

Authors

Chandler, Vincent

ISBN
9781100164304
Pages
25
Published in
Canada

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