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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Hlavní autor: European Investment Bank
Médium: Online
Jazyk:angličtina
Vydáno: European Investment Bank 2024
On-line přístup:OCN: 1422200500
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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.
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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