Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

In recent years, many emerging market countries have developed or are in the process of developing SME Exchanges to provide financing to SMEs, but few have succeeded. This paper aims to help stock exchanges and policy makers think through the ke

Emerging Market --- Equity Market --- Market Development --- Sme Capital Market --- Sme Exchange --- Sme Finance

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper analyzes the impact of two distinct shocks stemming from the cross-border transmission of the 2007-2009 crisis on credit availability for small firms. The paper uses data from AccessBank Azerbaijan which was affected in its liquidity position during the second and third quarters of 2008 by delays in its refinancing. The Azeri real economy was hit by the global crisis from the fourth quarter of 2008 onwards with a combined decline in oil prices, exports, remittances, and domestic demand. Therefore, a pure supply side shock con be contrasted with a real economy shock that hit exactly when the bank's funding position strengthened again. The paper finds that during the funding shock (potential) borrowers are discouraged from applying for loans. However, for those applications made, the likelihood of loan approval is not affected. The real economy shock, in contrast, reduces the approval likelihood for SME loans in particular, while agro and micro loans are considerably less affected. Finally, bank relationships increase credit availability in good as well as in bad times.

Access to Finance --- Bankruptcy and Resolution of Financial Distress --- Banks & Banking Reform --- Credit availability --- Debt Markets --- Emerging markets --- Finance and Financial Sector Development --- Financial crisis --- Microfinance --- Private Sector Development --- SME finance

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper examines the effect of Basel III implementation on the access to finance of small and medium-size enterprises in 32 emerging markets and developing economies. Analyzing rich, repeated cross-sectional data and a panel of matched firm-bank data in a difference-in-differences setting with sample selection adjustment, the authors find a short-term, moderately negative effect of Basel III on small and medium-size enterprises' access to financing. The results suggest that firms with access to bank credit prior to Basel III implementation could have been affected less than firms that were initially on the fringes of financial inclusion-firms with only a bank account. The paper fails to find any additional heterogeneous effects across firm size or age, bank capitalization or liquidity, or across countries that transitioned to Basel III from Basel II versus Basel 2.5. Overall, the initial conditions of the banking system as well as of complementary business and financial regulation can co-determine the size of short-term costs from the newly implemented global financial regulation in emerging markets and developing economies.

Bank Regulation --- Basel III --- Emerging Market Economies --- Finance and Financial Sector Development --- Financial Regulation --- Financial Regulation and Supervision --- Firm-Level Data --- Impact Evaluation --- Private Sector Development --- Small and Medium Size Enterprises --- Small And Medium-Sized Enterprises --- SME Finance

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Gender disparities in small and medium-size enterprise lending exist around the world and impede the growth of millions of women-led firms. This paper examines a potential driver of these disparities: gender-biased loan officers. Officer bias is measured through a novel loan application experiment conducted with 77 loan officers in Turkish banks. The analysis finds that 35 percent of the loan officers are biased against female applicants, with women receiving loan amounts USD14,000 lower on average compared with men. Experience in the banking sector can attenuate this bias, with each year of experience reducing gender biased loan allocations by 6 percent. The results suggest that loan officers may use gender bias as a heuristic device given limited information and risk aversion. Helping newly recruited and lesser experienced loan officers to better discern loan application quality may thus improve financing of business loans to women and reduce gender gaps in entrepreneurship.

Access to Finance --- Africa Gender Policy --- Banking --- Credit --- Entrepreneurship --- Female Entrepreneurs --- Finance and Financial Sector Development --- Financial Literacy --- Gender --- Gender and Development --- Gender and Economic Policy --- Gender Bias --- Gender Gap --- Gender Innovation Lab --- Inequality --- Law and Development --- Law and Gender --- Small and Medium Enterprises --- SME Finance