dc.contributor.author |
Sakho, Yaye Seynabou |
|
dc.contributor.author |
Claessens, Stijn |
|
dc.date.accessioned |
2014-02-03T21:36:30Z |
|
dc.date.available |
2014-02-03T21:36:30Z |
|
dc.date.issued |
2013-09 |
|
dc.identifier.uri |
http://hdl.handle.net/10986/16842 |
|
dc.description.abstract |
Firm surveys often indicate that firms
complain a lot about lack of access to financial services,
but financing constraints are difficult to identify, given
demand and supply considerations and with only surveys based
on firms' perceptions. Specifically, it is difficult to
separate demand for access to finance of viable firms with
good growth opportunities from that of firms that are not
creditworthy and should not deserve financing. In Brazil,
one of the main constraints to finance is related to the
high level of interest rates, which affects both bank
funding costs as well as bank intermediation spreads and, as
such, the cost of finance and hence the demand and supply of
bank financing. This paper analyzes a unique loan level data
set that covers almost a decade of monthly firm bank
information from credit registry information that is not
publicly available as well as two cross-sections of
Brazil's Investment Climate Assessment surveys in 2004
and 2008 that provide detailed information on firms'
micro characteristics as well as perceptions of credit. The
data allow identification of how firms'
characteristics, banks' characteristics, and macro
variables affect firms' demand for credit, banks'
supply of credit, and access to credit. The paper finds
first that access to finance for firms has improved over the
decade for small firms, reflecting the deepening of the
credit markets. However, access to credit depends strongly
on information availability captured in the positive
influence of collateral and credit history. Banks perceive
that it is less risky to lend to firms that the banks know
or that other banks know. Second, firms' loan demand is
inelastic to the interest rate at the individual loan
category level, possibly reflecting some screening and
pricing; however, when the loans are aggregated, the effect
of interest rates becomes significant and negative as
expected. Third, firms loan demand and loan supply are
affected by the availability of collateral and, in the case
of loan demand, longer maturity. Policy implications point
to the importance of reducing asymmetric information between
lenders and borrowers and on collateral to alleviate
financing constraints for small firms. |
en |
dc.language |
English |
|
dc.language.iso |
en_US |
|
dc.publisher |
World Bank, Washington, DC |
|
dc.relation.ispartofseries |
Policy Research Working Paper;No. 6624 |
|
dc.rights |
CC BY 3.0 IGO |
|
dc.rights.uri |
http://creativecommons.org/licenses/by/3.0/igo/ |
|
dc.subject |
BORROWER |
|
dc.subject |
SHORT-TERM TRADE FINANCE |
|
dc.subject |
EXTERNAL FINANCING CONSTRAINTS |
|
dc.subject |
INTERMEDIATION SPREADS |
|
dc.subject |
CORPORATE FINANCING |
|
dc.subject |
ACCESS TO FINANCE |
|
dc.subject |
INFORMATION ASYMMETRY |
|
dc.subject |
INSTITUTIONAL ENVIRONMENT |
|
dc.subject |
WORKING CAPITAL |
|
dc.subject |
EQUILIBRIUM CREDIT RATIONING |
|
dc.subject |
RESERVE BANK OF AUSTRALIA |
|
dc.subject |
LACK OF ACCESS |
|
dc.subject |
CENTRAL BANK |
|
dc.subject |
INTERNATIONAL BANK |
|
dc.subject |
PRODUCTIVITY |
|
dc.subject |
MARKET DEEPENING |
|
dc.subject |
CREDIT HISTORY |
|
dc.subject |
BANK LIQUIDITY |
|
dc.subject |
INCOME STATEMENT |
|
dc.subject |
INDIVIDUAL LOAN |
|
dc.subject |
CREDIT LIMIT |
|
dc.subject |
MARKET CONDITIONS |
|
dc.subject |
INVESTMENT OPPORTUNITIES |
|
dc.subject |
DEBT |
|
dc.subject |
PRIVATE CREDIT |
|
dc.subject |
SMALL BANKS |
|
dc.subject |
BANK CREDIT |
|
dc.subject |
MARKET COMPETITION |
|
dc.subject |
POOR COLLATERAL |
|
dc.subject |
BANKING SYSTEMS |
|
dc.subject |
JUDGES |
|
dc.subject |
LARGE FIRMS |
|
dc.subject |
COLLATERAL REQUIREMENT |
|
dc.subject |
AVAILABILITY OF COLLATERAL |
|
dc.subject |
CREDIT LINE |
|
dc.subject |
BUSINESS CREDIT |
|
dc.subject |
USURY |
|
dc.subject |
CASH FLOWS |
|
dc.subject |
BANK MONITORING |
|
dc.subject |
EXTERNAL FINANCING |
|
dc.subject |
TAX |
|
dc.subject |
DEVELOPING COUNTRIES |
|
dc.subject |
TRANSACTION |
|
dc.subject |
LOAN CHARACTERISTICS |
|
dc.subject |
SOURCES OF FINANCE |
|
dc.subject |
SMALL BUSINESS |
|
dc.subject |
OVERDRAFT |
|
dc.subject |
DEPENDENT |
|
dc.subject |
CAPITAL STRUCTURE |
|
dc.subject |
EQUILIBRIUM CREDIT |
|
dc.subject |
PROFITABILITY |
|
dc.subject |
BANK INTERMEDIATION |
|
dc.subject |
FINANCIAL SERVICE |
|
dc.subject |
MARKET LIQUIDITY |
|
dc.subject |
SMALL LOANS |
|
dc.subject |
JUDICIAL SYSTEM |
|
dc.subject |
LOAN CATEGORY |
|
dc.subject |
TRANSACTIONS COSTS |
|
dc.subject |
USE OF COLLATERAL |
|
dc.subject |
FINANCIAL MARKET |
|
dc.subject |
CREDITWORTHINESS |
|
dc.subject |
FINANCIAL INFORMATION |
|
dc.subject |
RESERVE |
|
dc.subject |
OVERDRAFTS |
|
dc.subject |
BANK LENDING |
|
dc.subject |
MARKET FAILURES |
|
dc.subject |
MACROECONOMIC CONDITIONS |
|
dc.subject |
COST OF CAPITAL |
|
dc.subject |
CAPITAL STOCK |
|
dc.subject |
REAL INTEREST RATES |
|
dc.subject |
CREDITORS |
|
dc.subject |
CREDIT LINES |
|
dc.subject |
INVESTMENT FUNDS |
|
dc.subject |
HIGH INTEREST RATES |
|
dc.subject |
ECONOMIC SYSTEMS |
|
dc.subject |
INVESTMENT DECISIONS |
|
dc.subject |
REAL INTEREST |
|
dc.subject |
BANKS |
|
dc.subject |
BANKING SYSTEM |
|
dc.subject |
LOAN RATE |
|
dc.subject |
CONTRACT ENFORCEMENT |
|
dc.subject |
INVESTMENT CLIMATE |
|
dc.subject |
FINANCIAL SYSTEMS |
|
dc.subject |
OPPORTUNITY COST |
|
dc.subject |
INCOME GROUP |
|
dc.subject |
ACCESS TO FINANCIAL SERVICES |
|
dc.subject |
LACK OF CREDIT |
|
dc.subject |
LEVEL OF INTEREST RATES |
|
dc.subject |
LOAN MARKET |
|
dc.subject |
BANK CHARGES |
|
dc.subject |
LOAN CATEGORIES |
|
dc.subject |
PARTNER BANK |
|
dc.subject |
PUBLIC BANK |
|
dc.subject |
OVERDRAFT LOANS |
|
dc.subject |
BORROWING |
|
dc.subject |
BANK INTEREST RATES |
|
dc.subject |
INTEREST RATES |
|
dc.subject |
HUMAN RESOURCES |
|
dc.subject |
FINANCIAL PLANNING |
|
dc.subject |
PROMISSORY NOTES |
|
dc.subject |
FINANCES |
|
dc.subject |
GROWTH OPPORTUNITIES |
|
dc.subject |
CONTRACT ENFORCEABILITY |
|
dc.subject |
LENDERS |
|
dc.subject |
RETURNS |
|
dc.subject |
CASH PAYMENT |
|
dc.subject |
ANTI-CREDITOR |
|
dc.subject |
CREDIT ACCESS |
|
dc.subject |
FINANCIAL CRISIS |
|
dc.subject |
LEGAL CONSTRAINTS |
|
dc.subject |
PUBLIC BANKS |
|
dc.subject |
LENDING INTEREST RATES |
|
dc.subject |
SHORT-TERM INTEREST RATES |
|
dc.subject |
BANK ACCOUNT |
|
dc.subject |
MACROECONOMIC VARIABLES |
|
dc.subject |
BIASES |
|
dc.subject |
EQUITY RATIO |
|
dc.subject |
LINE OF CREDIT |
|
dc.subject |
CREDIT GROWTH |
|
dc.subject |
CREDIT INSTRUMENT |
|
dc.subject |
COLLATERALS |
|
dc.subject |
INSTRUMENT |
|
dc.subject |
REGULATORY POLICY |
|
dc.subject |
JUDGE |
|
dc.subject |
MONETARY POLICY |
|
dc.subject |
REAL INTEREST RATE |
|
dc.subject |
BANK LOAN |
|
dc.subject |
MACROECONOMICS |
|
dc.subject |
COURT RULING |
|
dc.subject |
LOAN DEMAND |
|
dc.subject |
REGISTRY SYSTEM |
|
dc.subject |
PERC |
|
dc.subject |
LOAN REQUEST |
|
dc.subject |
CAPITAL LOANS |
|
dc.subject |
BALANCE SHEET |
|
dc.subject |
CREDIT MARKET |
|
dc.subject |
CREDIT RECORD |
|
dc.subject |
CREDIT INFORMATION |
|
dc.subject |
LOAN MATURITY |
|
dc.subject |
SMALL BUSINESS FINANCE |
|
dc.subject |
INTEREST RATES FOR LOAN |
|
dc.subject |
COLLATERAL |
|
dc.subject |
INVENTORIES |
|
dc.subject |
ACCESS TO CREDIT |
|
dc.subject |
OUTSTANDING DEBT |
|
dc.subject |
PRIVATE BANKS |
|
dc.subject |
BANK LENDING RELATIONSHIP |
|
dc.subject |
EMERGING MARKET |
|
dc.subject |
FINANCIAL STUDIES |
|
dc.subject |
DISCRIMINATION |
|
dc.subject |
OBSTACLES TO GROWTH |
|
dc.subject |
USURY LAWS |
|
dc.subject |
INVESTMENT DECISION |
|
dc.subject |
INTERNAL FINANCING |
|
dc.subject |
CONTRACT DESIGN |
|
dc.subject |
CD |
|
dc.subject |
JOB CREATION |
|
dc.subject |
CREDITOR CLAIM |
|
dc.subject |
ACCESS TO BANK |
|
dc.subject |
BANKING CRISIS |
|
dc.subject |
BANK LOANS |
|
dc.subject |
DOMESTIC BANK |
|
dc.subject |
SETTLEMENT |
|
dc.subject |
MATURITIES |
|
dc.subject |
STOCK MARKETS |
|
dc.subject |
ACCESS TO FINANCING |
|
dc.subject |
BANKING MARKETS |
|
dc.subject |
EXCLUSION |
|
dc.subject |
CREDIT RISK |
|
dc.subject |
LACK OF COMPETITION |
|
dc.subject |
TAXATION |
|
dc.subject |
JURISDICTION |
|
dc.subject |
CREDIT RATIONING |
|
dc.subject |
DOMESTIC CREDIT |
|
dc.subject |
REGISTRY DATA |
|
dc.subject |
TERM CREDIT |
|
dc.subject |
FINANCING CONSTRAINT |
|
dc.subject |
FINANCING CONSTRAINTS |
|
dc.subject |
BANK FINANCING |
|
dc.subject |
JUDICIAL EXECUTION |
|
dc.subject |
MARKET VALUE |
|
dc.subject |
TOTAL_DEBT |
|
dc.subject |
INTEREST RATE VOLATILITY |
|
dc.subject |
APPLICATION PROCEDURES |
|
dc.subject |
ASYMMETRIC INFORMATION |
|
dc.subject |
MARKET STRUCTURE |
|
dc.subject |
TRADE CREDITS |
|
dc.subject |
COMMERCIAL BANKS |
|
dc.subject |
LIABILITY |
|
dc.subject |
LOAN |
|
dc.subject |
CREDIT REGISTRY |
|
dc.subject |
CORRUPTION |
|
dc.subject |
INVESTMENT FINANCING |
|
dc.subject |
DEMAND FOR CREDIT |
|
dc.subject |
DIRECTED CREDIT |
|
dc.subject |
OUTSTANDING DEBTS |
|
dc.subject |
MACROECONOMIC INSTABILITY |
|
dc.subject |
DEBTORS |
|
dc.subject |
LOAN CONTRACTS |
|
dc.subject |
MONETARY FUND |
|
dc.subject |
POOR CREDIT |
|
dc.subject |
FINANCIAL INSTITUTIONS |
|
dc.subject |
INFLATION |
|
dc.subject |
INTERNAL FUNDS |
|
dc.subject |
BUSINESS CYCLE |
|
dc.subject |
CREDIT REGISTRIES |
|
dc.subject |
DEBT OUTSTANDING |
|
dc.subject |
CASH FLOW |
|
dc.subject |
INTEREST RATE |
|
dc.subject |
LOAN VOLUMES |
|
dc.subject |
CREDIT MARKETS |
|
dc.subject |
ECONOMIC ACTIVITY |
|
dc.subject |
FINANCIAL INTERMEDIATION |
|
dc.subject |
HOUSEHOLDS |
|
dc.subject |
CORPORATE INVESTMENT |
|
dc.subject |
LACK OF COLLATERAL |
|
dc.subject |
TAX RATES |
|
dc.subject |
FINANCIAL SERVICE PROVIDERS |
|
dc.subject |
POOR CREDIT HISTORY |
|
dc.subject |
COST OF CREDIT |
|
dc.subject |
CREDIT CRUNCH |
|
dc.subject |
SUPPLY OF CREDIT |
|
dc.subject |
PROMISSORY NOTE |
|
dc.subject |
RESERVE BANK |
|
dc.subject |
CREDITOR |
|
dc.title |
Assessing Firms' Financing Constraints in Brazil |
en |
dc.rights.holder |
World Bank |
|