Publication:
The Ability of Banks to Lend to Informationally Opaque Small Businesses

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dc.contributor.authorBerger, Allen N.
dc.contributor.authorKlapper, Leora
dc.contributor.authorUdell, Gregory F.
dc.date.accessioned2014-08-21T17:37:19Z
dc.date.available2014-08-21T17:37:19Z
dc.date.issued2001-08
dc.description.abstractConsolidation of the banking industry is shifting assets into larger institutions that often operate in many nations. Large international financial institutions are geared toward serving large wholesale customers. How does this affect the banking system's ability to lend to informationally opaque small businesses? The authors test hypotheses about the effects of bank size, foreign ownership, and distress on lending to informationally opaque small firms, using a rich new data set on Argentinean banks, firms, and loans. They also test hypotheses about borrowing from a single bank versus borrowing from several banks. Their results suggest that large and foreign-owned institutions may have difficulty extending relationship loans to opaque small firms, especially if small businesses are delinquent in repaying their loans. Bank distress resulting from lax prudential supervision and regulation appears to have no greater effect on small borrowers than on large borrowers, although even small firms may react to bank distress by borrowing from multiple banks, despite raising borrowing costs and destroying some of the benefits of exclusive lending relationships.en
dc.identifierhttp://documents.worldbank.org/curated/en/2001/08/1561491/ability-banks-lend-informationally-opaque-small-businesses
dc.identifier.doi10.1596/1813-9450-2656
dc.identifier.urihttps://hdl.handle.net/10986/19567
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2656
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGRICULTURE
dc.subjectALLOCATION OF RESOURCES
dc.subjectBALANCE SHEET
dc.subjectBANK ASSETS
dc.subjectBANK CAPITAL
dc.subjectBANK HOLDING COMPANIES
dc.subjectBANK LENDING
dc.subjectBANK MERGERS
dc.subjectBANK PORTFOLIOS
dc.subjectBANK RISK
dc.subjectBANK RISK TAKING
dc.subjectBANK SIZE
dc.subjectBANK STRUCTURE
dc.subjectBANKING CRISES
dc.subjectBANKING CRISIS
dc.subjectBANKING INDUSTRY
dc.subjectBANKING RELATIONSHIPS
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectBANKING SYSTEMS
dc.subjectBANKS
dc.subjectBASLE ACCORD
dc.subjectBORROWER
dc.subjectBORROWING
dc.subjectBORROWING COSTS
dc.subjectCAPITAL STANDARDS
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPARATIVE ADVANTAGES
dc.subjectCOMPETITORS
dc.subjectCONSOLIDATION
dc.subjectCONTAGION
dc.subjectCOSTS OF BORROWING
dc.subjectCREDIT POLICIES
dc.subjectDEBT
dc.subjectDEPOSITORS
dc.subjectDEPOSITS
dc.subjectDISECONOMIES
dc.subjectDISTRESSED BANKS
dc.subjectEMPIRICAL ANALYSIS
dc.subjectEMPLOYMENT
dc.subjectEUROPEAN CENTRAL BANK
dc.subjectFEDERAL RESERVE SYSTEM
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DISTRESS
dc.subjectFINANCIAL INFORMATION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTERMEDIARIES
dc.subjectFINANCIAL RATIOS
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL TRANSACTIONS
dc.subjectFOREIGN ENTRY
dc.subjectGDP
dc.subjectINCOME STATEMENTS
dc.subjectINFLATION
dc.subjectINFORMATION ACQUISITION
dc.subjectINSOLVENCY
dc.subjectINSURANCE
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectLENDER
dc.subjectLENDERS
dc.subjectLENDING BEHAVIOR
dc.subjectLENDING SERVICES
dc.subjectLENDING TERMS
dc.subjectLOAN
dc.subjectLOAN APPLICATIONS
dc.subjectLOAN PORTFOLIOS
dc.subjectLOW INTEREST RATES
dc.subjectMARKET DISCIPLINE
dc.subjectNONPERFORMING LOANS
dc.subjectPATENTS
dc.subjectPREDICTIONS
dc.subjectPRESENT VALUE
dc.subjectPRIVATIZATION
dc.subjectPROFITABILITY
dc.subjectPROPRIETARY INFORMATION
dc.subjectPRUDENTIAL SUPERVISION
dc.subjectRELATIONSHIP LENDING
dc.subjectRISK TAKING
dc.subjectSMALL BANKS
dc.subjectSMALL BUSINESS
dc.subjectSUBSIDIARY
dc.subjectSUPPLIERS
dc.subjectTRADE BARRIERS
dc.subjectTRANSACTIONS COSTS
dc.subjectWEALTH
dc.titleThe Ability of Banks to Lend to Informationally Opaque Small Businessesen
dspace.entity.typePublication
okr.crossref.titleThe Ability of Banks to Lend to Informationally Opaque Small Businesses
okr.date.disclosure2001-08-31
okr.date.doiregistration2025-04-10T10:52:04.298072Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2001/08/1561491/ability-banks-lend-informationally-opaque-small-businesses
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid654251468739246180
okr.identifier.doi10.1596/1813-9450-2656
okr.identifier.externaldocumentum000094946_01090804015360
okr.identifier.internaldocumentum1561491
okr.identifier.reportWPS2656
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2001/11/22/000094946_01090804015360/Rendered/PDF/multi0page.pdfen
okr.sectorFinancial Sector Development
okr.sectorFinance
okr.topicEconomic Theory and Research
okr.topicBanks and Banking Reform
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicMacroeconomics and Economic Growth::Economic Adjustment and Lending
okr.topicPublic Sector Development::Decentralization
okr.topicPayment Systems and Infrastructure
okr.topicFinancial Crisis Management and Restructuring
okr.unitFinance, Development Research Group
okr.volume1
relation.isAuthorOfPublicatione0a9502f-8574-53b5-bf27-732f5a6026e2
relation.isAuthorOfPublication.latestForDiscoverye0a9502f-8574-53b5-bf27-732f5a6026e2
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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