The signalling role of trade credit in bank lending decisions: Evidence from SMEs

2021 ◽  
Author(s):  
Belinda L. Del Gaudio ◽  
Gabriele Sampagnaro ◽  
Claudio Porzio ◽  
Vincenzo Verdoliva
Keyword(s):  
Trade Credit ◽  
Bank Lending ◽  
Lending Decisions

The Role of Information from International Bank Lending in Mutual Fund Equity Investing

2017 ◽  
Author(s):  
Linda Allen ◽  
Suparna Chakraborty ◽  
Sonali Hazarika ◽  
Chih-Huei (Debby) Su
Keyword(s):  
Mutual Fund ◽  
Bank Lending ◽  
International Bank ◽  
Role Of Information

scholarly journals Non-bank financial institutions and economic growth: Evidence from Africa’s three largest economies

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Ronald Rateiwa ◽  
Meshach J. Aziakpono
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Financial Institutions ◽  
Time Series Data ◽  
Bank Lending ◽  
Series Data ◽  
The Sustainable Development ◽  
Long Run ◽  
The Relationship

Background: In order for the post-2015 world development agenda – termed the sustainable development goals (SDGs) – to succeed, there is a pronounced need to ensure that available resources are used more effectively and additional financing is accessed from the private sector. Given that traditional bank lending has slowed down, the development of non-bank financing has become imperative. To this end, this article intends to empirically test the role of non-bank financial institutions (NBFIs) in stimulating economic growth.Aim: The aim of this article is to empirically test the existence of a long-run equilibrium relationship between economic growth and the development of NBFIs, and the causality thereof.Setting: The empirical assessment uses time-series data from Africa’s three largest economies, namely, Egypt, Nigeria and South Africa, over the period 1971–2013.Methods: This article uses the Johansen cointegration and vector error correction model within a country-specific setting.Results: The results showed that the long-run relationship between NBFI development and economic growth is relatively stronger in Egypt and South Africa, than in Nigeria. Evidence in respect of Nigeria shows that such a relationship is weak. The nature of the relationship between NBFI development and economic growth in Egypt is positive and significant, and predominantly bidirectional. This suggests that a virtuous relationship between NBFIs and economic growth exists in Egypt. In South Africa, the relationship is positive and significant and predominantly runs from NBFI development to economic growth, implying a supply-leading phenomenon. In Nigeria, the results are weak and mixed.Conclusion: The study concludes that in countries with more developed financial systems, the role of NBFIs and their importance to the economic growth process are more pronounced. Thus, there is need for developing policies targeted at developing the NBFI sector, given their potential to contribute to economic growth.

Supply Chain Characteristics and Bank Lending Decisions

2017 ◽  
Author(s):  
Iftekhar Hasan ◽  
Kristina Minnick ◽  
Kartik Raman
Keyword(s):  
Supply Chain ◽  
Bank Lending ◽  
Lending Decisions

scholarly journals The Role of Capital and Liquidity in Bank Lending: Are Banks Safer?

Global Policy ◽  
2020 ◽  
Vol 11 (S1) ◽  
pp. 28-38
Author(s):  
Salvatore Polizzi ◽  
Enzo Scannella ◽  
Nuria Suárez
Keyword(s):  
Bank Lending

scholarly journals Corporate Resilience to Banking Crises: The Roles of Trust and Trade Credit

2018 ◽  
Vol 53 (4) ◽  
pp. 1441-1477 ◽  
Author(s):  
Ross Levine ◽  
Chen Lin ◽  
Wensi Xie
Keyword(s):  
Trade Credit ◽  
Social Trust ◽  
Bank Lending ◽  
Banking Crises ◽  
Bank Lending Channel ◽  
Firm Level ◽  
Informal Finance ◽  
Lending Channel ◽  
Level Data ◽  
Corporate Profits

Are firms more resilient to systemic banking crises in economies with higher levels of social trust? Using firm-level data in 34 countries from 1990 through 2011, we find that liquidity-dependent firms in high-trust countries obtain more trade credit and suffer smaller drops in profits and employment during banking crises than similar firms in low-trust economies. The results are consistent with the view that when banking crises block the normal bank-lending channel, greater social trust facilitates access to informal finance, cushioning the effects of these crises on corporate profits and employment.

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