Credit derivatives are the latest in a series of innovations that have had a significant impact on credit markets. Using a micro data set of individual corporate loans, this paper explores whether use of credit derivatives is associated with an increase in bank credit supply. We find evidence that greater use of credit derivatives is associated with greater supply of bank credit for large term ...

This paper examines whether and how ownership structure affects the trade credit policies in smalland medium-sized firms (SMEs) using a sample obtained from a survey of Chinese enterprises. Specifically, we examine how ownership concentration affects SMEs’ use of trade credit through influencing the availability of bank credit. We also examine whether the ownership of the ultimate controller in...

Following the deregulation policies implemented by the Chinese government in 2001, foreign banks were allowed to enter the Chinese banking market gradually, in different years in different cities. As a result, from 2001 to 2006 firms in different cities had differential access to foreign bank credit. Using an extensive firm-level dataset from the manufacturing census in China, this paper studie...

This paper measures the importance of bank-firm relationships in obtaining higher credit “limits.” We use data from a relatively unused section of the National Survey of Small Business Finance (NSSBF, 1993) on credit limits, credit sources, and contract terms for firms with lines of credit from multiple banks. This lets us isolate the credit limit that each bank provides the same firm, eliminat...

credit risk is defined as a situation in which the liability itself and its interests are not paid back based on the terms determined in contract. in fact, it is considered as the most important risk each bank has to encounter, among the ones present in banking operations, which is actually because of bank's later life being dependent on it. therefore, carefully taken into account, the fac...

nowadays, credit risk is recognized as one of the most important bankruptcy factors of banks and financial institutions. in order to manage and control this risk, design of credit rating models is undeniable necessity. credit rating is used to identify the probability of credit default and on the other side classify the customers into two groups: good and bad accounts. until now, various statis...

This paper examines the relationship between UK firms’ choices over bank-based and market-based finance under different monetary conditions. The evolving financial environment facing the corporate sector provides many nonbank external finance options available as an alternative to bank finance. The paper shows that firms distributed according to their type (asset size, rating etc) have differen...

This research examines the e¤ects of relaxing credit constraints on households’ saving and credit choices. I focus in the opening of a new bank in Mexico that targeted workers of the informal sector that were previously denied access to bank credit. I …rst explore the di¤erence-indi¤erence e¤ects of the appearance of this bank. Important changes are found in households from municipalities with ...

The main objective of the study is to assess the impact of micro-credit on poverty reduction . The study was conducted among recipients of microcredit provided by both Grameen Bank and the BRDB in Manikganj Sadar Upazila of Manikganj district and Sagalnaiya Upazila of Feni district. The study reveals that Grameen Bank and BRDB covered higher proportion of landless households compared to control...

The paper examines the causal nexus between financial development and economic growth in India in a multivariate VAR model. The empirical analysis is based on cointegration and causality test. The cointegration test finds the presence of long run equilibrium relationship between financial development and economic growth. The Granger causality test finds the existence of bidirectional causality ...