EIB Working Paper 2023/06
Many creditworthy non-financial firms are discouraged from applying for loans, resulting in a significant gap between their potential to receive credit and the reality. To quantify the credit gap, this study combines a credit allocation rule with a scoring model that assesses the creditworthiness of...
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| Médium: | Online |
| Jazyk: | angličtina |
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European Investment Bank
2024
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| On-line přístup: | OCN: 1422200500 |
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| _version_ | 1863747243486478336 |
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| author | European Investment Bank |
| author_browse | European Investment Bank |
| author_facet | European Investment Bank |
| author_sort | European Investment Bank |
| collection | Directory of Open Access Books |
| description | Many creditworthy non-financial firms are discouraged from applying for loans, resulting in a significant gap between their potential to receive credit and the reality. To quantify the credit gap, this study combines a credit allocation rule with a scoring model that assesses the creditworthiness of discouraged firms. It covers 35 emerging markets and developing economies and uses data from the 2018-2020 EBRD-EIB-World Bank Enterprise Survey. The results show that discouraged firms are less creditworthy than successful applicants, on average. However, the share of discouraged firms that are creditworthy is large, suggesting that credit to firms is being rationed by the financial sector. The results point to an average credit gap of 8.4% of GDP, with significant variation across countries. Small and medium-sized firms account for more than two-thirds of the total gap, reflecting both their large contribution to economic activity and the fact that they are more likely to be credit-constrained than larger firms. |
| format | Online |
| id | doab-20.500.12854ir-134336 |
| institution | Directory of Open Access Books |
| language | eng |
| publishDate | 2024 |
| publishDateRange | 2024 |
| publishDateSort | 2024 |
| publisher | European Investment Bank |
| publisherStr | European Investment Bank |
| record_format | ojs |
| spelling | doab-20.500.12854ir-1343362025-07-30T07:52:01Z EIB Working Paper 2023/06 European Investment Bank Many creditworthy non-financial firms are discouraged from applying for loans, resulting in a significant gap between their potential to receive credit and the reality. To quantify the credit gap, this study combines a credit allocation rule with a scoring model that assesses the creditworthiness of discouraged firms. It covers 35 emerging markets and developing economies and uses data from the 2018-2020 EBRD-EIB-World Bank Enterprise Survey. The results show that discouraged firms are less creditworthy than successful applicants, on average. However, the share of discouraged firms that are creditworthy is large, suggesting that credit to firms is being rationed by the financial sector. The results point to an average credit gap of 8.4% of GDP, with significant variation across countries. Small and medium-sized firms account for more than two-thirds of the total gap, reflecting both their large contribution to economic activity and the fact that they are more likely to be credit-constrained than larger firms. 2024-02-17T04:01:35Z 2024-02-17T04:01:35Z 2024-02-16T05:30:52Z 2023 book OCN: 1422200500 https://library.oapen.org/handle/20.500.12657/87740 https://directory.doabooks.org/handle/20.500.12854/134336 eng open access image/jpeg image/jpeg image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International https://library.oapen.org/bitstream/20.500.12657/87740/1/SID-0000004483260_optimized.pdf https://library.oapen.org/bitstream/20.500.12657/87740/1/SID-0000004483260_optimized.pdf https://library.oapen.org/bitstream/20.500.12657/87740/1/SID-0000004483260_optimized.pdf European Investment Bank European Investment Bank 10.2867/292116 10.2867/292116 feca012f-a3d8-4aac-95aa-b6cf4bdbed7c Knowledge Unlatched Knowledge Unlatched (KU) KU Open Services European Investment Bank open access |
| spellingShingle | European Investment Bank EIB Working Paper 2023/06 |
| title | EIB Working Paper 2023/06 |
| title_full | EIB Working Paper 2023/06 |
| title_fullStr | EIB Working Paper 2023/06 |
| title_full_unstemmed | EIB Working Paper 2023/06 |
| title_short | EIB Working Paper 2023/06 |
| title_sort | eib working paper 2023 06 |
| url | OCN: 1422200500 |
| work_keys_str_mv | AT europeaninvestmentbank eibworkingpaper202306 |