An Analysis of Commercial Bank Lending Criteria for Small Business Loans: An Experimental Study

1992 ◽  
Vol 1 (2) ◽  
pp. 33-52
Author(s):  
Darren J. Brown ◽  
Lois A. Munro
Keyword(s):  
Experimental Study ◽  
Small Business ◽  
Commercial Bank ◽  
Bank Lending ◽  
Small Business Loans

Effect of Corporate Social Responsibility on Pricing of Small Business Loans

2021 ◽  
pp. 1226-1249
Author(s):  
Markku Vieru ◽  
Janne Peltoniemi
Keyword(s):  
Corporate Social Responsibility ◽  
Small Business ◽  
Social Responsibility ◽  
Small Firms ◽  
Management Practices ◽  
Bank Lending ◽  
Loan Pricing ◽  
Small Business Finance ◽  
Small Business Loans ◽  
Corporate Social

This study analyzes corporate social responsibility (CSR) issues in small business finance in Finland, especially within relationship banking. The study combines credit-file data obtained from a large local Finnish bank with a CSR questionnaire conducted with the bank's business loan managers. The credit-file data contain specific details of CSR characteristics, as well as relationship-, collateral-, firm-, and loan-specific characteristics. CSR, typically considered as a non-financial item, contains value-relevant financial information which affects the loan pricing level. The results show that both overinvestment in CSR and the value created by CSR are valid but connected to different CSR characteristics. Overinvestment is associated with the environment and value creation with diversity and employees. The results contribute to the understanding of the characteristics of CSR in the context of small business bank lending, as well as more generally to important implications for small firms, banks, and management practices.

Effect of Corporate Social Responsibility on Pricing of Small Business Loans

2021 ◽  
pp. 146-169
Author(s):  
Markku Vieru ◽  
Janne Peltoniemi
Keyword(s):  
Corporate Social Responsibility ◽  
Small Business ◽  
Social Responsibility ◽  
Small Firms ◽  
Management Practices ◽  
Bank Lending ◽  
Loan Pricing ◽  
Small Business Finance ◽  
Small Business Loans ◽  
Corporate Social

This study analyzes corporate social responsibility (CSR) issues in small business finance in Finland, especially within relationship banking. The study combines credit-file data obtained from a large local Finnish bank with a CSR questionnaire conducted with the bank's business loan managers. The credit-file data contain specific details of CSR characteristics, as well as relationship-, collateral-, firm-, and loan-specific characteristics. CSR, typically considered as a non-financial item, contains value-relevant financial information which affects the loan pricing level. The results show that both overinvestment in CSR and the value created by CSR are valid but connected to different CSR characteristics. Overinvestment is associated with the environment and value creation with diversity and employees. The results contribute to the understanding of the characteristics of CSR in the context of small business bank lending, as well as more generally to important implications for small firms, banks, and management practices.

scholarly journals Effects of Regional Bank Merger on Small Business Borrowing: Evidence from Japan

2015 ◽  
Vol 7 (11) ◽  
pp. 62
Author(s):  
Hironobu Miyazaki ◽  
Hiroyuki Aman
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Economies Of Scale ◽  
Loan Portfolio ◽  
Small Business Lending ◽  
Borrowing Costs ◽  
Bank Merger ◽  
Regional Bank ◽  
Small Business Loans ◽  
The Impact

This study examines the impact of a regional bank merger in Japan on borrowing by small businesses, focusing on firms that borrow from the acquiring bank, the acquired bank, or both. First, we find that post-merger borrowing costs declined. This result suggests that small borrowers enjoy more favorable post-merger financing conditions because efficiencies from economies of scale lead to lower costs. Second, we<strong> </strong>find that post-merger borrowing costs decline for firms that borrow only from the acquiring or acquired bank, whereas they did not decline for firms that borrow from both. Third, we find that only small business loans to firms that borrow from both the acquiring and acquired banks decrease post-merger. This result suggests that small business lending might decline because of a merged bank’s loan portfolio and lending strategy.

FEATURES OF THE RUSSIAN SMALL BUSINESS MODEL AND THE CONSEQUENCES OF THE COVID-19 PANDEMIC

2021 ◽  
pp. 71-85
Author(s):  
Natal’ya E. Egorova ◽  
Keyword(s):  
Small Business ◽  
Business Model ◽  
Small Businesses ◽  
Structural Characteristics ◽  
Bank Lending ◽  
Structural Instability ◽  
Government Support ◽  
Negative Consequences ◽  
Development Levels ◽  
The Impact

The article analyzes the quantitative and structural stability of Russian small business and identifies the model features of its functioning. It investigates the dynamics of development of Russian small business is investigated and notes a downward trend in the number of small and medium-sized enterprises over the past two years. A conclusion is drawn that the quantitative indicators reflecting its functioning are highly sensitive to the negative effects of the macroeconomic environment. The author introduces a concept of the small business heterogeneity and brings up its structural characteristics, represented by various categories of small and medium-sized firms. Comparative analysis of the Russian small business model with foreign small business confirms its quantitative and structural instability. That makes the considered sector of the national economy vulnerable to shocks (externalities), including the COVID-19 pandemic. It is assumed that the negative consequences of the pandemic will affect Russian small businesses more than foreign ones, and the gap in their development levels will widen. An assessment of the impact of the COVID-19 pandemic on Russian small business and a forecast of its development are made in the context of limited government support and the absence of active bank lending.

A DECISION MODEL FOR SMALL BUSINESS LOANS

1983 ◽  
Vol 1 (2) ◽  
pp. 18-27
Author(s):  
Dale Doreen ◽  
Farzad Farhoomand
Keyword(s):  
Small Business ◽  
Decision Model ◽  
Small Business Loans

scholarly journals Factors Affecting Commercial Bank Lending to Agriculture

1995 ◽  
Vol 27 (1) ◽  
pp. 112-126 ◽  
Author(s):  
Eustacius N. Betubiza ◽  
David J. Leatham
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Bank Lending ◽  
Bank Holding Companies ◽  
Demand And Supply ◽  
Holding Companies ◽  
Factors Affecting ◽  
Loan Portfolios

AbstractA tobit econometric procedure was used to examine the effect of selected demand and supply factors on nonreal estate agricultural lending by commercial banks in Texas. Results show that banks have reduced their agricultural loan portfolios in response to increased use of interest sensitive deposits after deregulation. Moreover, almost half of this decrease came from banks that stopped making agricultural loans. Also, results show that banks affiliated with multi-bank holding companies lend less money to agriculture relative to their assets than do independent banks.

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