Stephanou, ConstantinosRodriguez, Camila2012-05-252012-05-252008-01https://hdl.handle.net/10986/6486The objective of this paper is to shed light on current trends and policy challenges in the financing of small- and medium-sized enterprises (SMEs) by banks in Colombia. The paper is motivated by the well-documented financing gap for SMEs, whose causes are complex and multi-dimensional. Based on data collection and interviews with the authorities, a representative sample of banks, and other relevant entities, the authors analyze the evolution and characteristics of this market in recent years. Bank financing to SMEs is becoming a strategic segment for Colombian credit institutions. The current business and risk management models for SME lending are still relatively underdeveloped, but greater sophistication is expected as the market matures. Important institutional and policy constraints to SME lending remain, but are not yet binding. In order to address these constraints before they "begin to bite", the authors identify and describe a potential policy reform agenda.CC BY 3.0 IGOACCEPTABLE COLLATERALACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCOUNTINGACCOUNTS RECEIVABLEAFFILIATEAGRICULTURAL SECTORALTERNATIVE FINANCINGALTERNATIVE SOURCES OF FINANCINGAUDITINGAVAILABILITY OF CREDITBANK BRANCHESBANK DEPOSITBANK FINANCINGBANK INVOLVEMENTBANK LENDINGBANKING SERVICESBANKING SYSTEMBANKRUPTCYBANKSBORROWERBORROWINGBUSINESS ACTIVITIESBUSINESS ACTIVITYBUSINESS CENTERBUSINESS CENTERSBUSINESS CREDITBUSINESS DEVELOPMENTBUSINESS ENTERPRISEBUSINESS PLANBUSINESS PLANSBUSINESS STRATEGYCAPITAL LOANSCAPITAL MARKETSCAPITAL STRUCTURECAPITALIZATIONCASH MANAGEMENTCHAMBERS OF COMMERCECOLLATERALCOLLATERAL REQUIREMENTSCOMMERCIAL BANKCOMMERCIAL FINANCECOMMERCIAL LOANCOMMERCIAL LOANSCONSUMER CREDITCONSUMER LENDINGCONTRIBUTIONCORPORATE BANKINGCOUNTRY COMPARISONSCREDIT APPLICATIONSCREDIT BUREAUCREDIT BUREAUSCREDIT CARDCREDIT CARDSCREDIT GUARANTEESCREDIT INFORMATIONCREDIT INSTITUTIONCREDIT INSTITUTIONSCREDIT LINESCREDIT MARKETCREDIT PORTFOLIOCREDIT PRODUCTSCREDIT REPORTINGCREDIT REPORTSCREDIT RISKCREDIT RISK MANAGEMENTCREDIT SCORINGCREDIT SCORING MODELSCREDITORCREDITORSCREDITSCREDITWORTHINESSDEBTSDEPOSIT ACCOUNTSDEPOSITORDEPOSITORSDEPOSITSDIVERSIFICATIONDOMESTIC CREDITECONOMIC GROWTHELECTRONIC BANKINGEMPLOYMENTENTERPRISE ASSISTANCEENTREPRENEURIAL DEVELOPMENTENTREPRENEURIAL TRAININGEXTERNAL FINANCEFACE VALUEFACTORINGFAMILY BUSINESSESFINANCE COMPANIESFINANCIAL ACCESSFINANCIAL CONSTRAINTSFINANCIAL ECONOMISTFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIARIESFINANCIAL INTERMEDIATIONFINANCIAL LEASINGFINANCIAL LITERACYFINANCIAL MARKETSFINANCIAL PENETRATIONFINANCIAL PERFORMANCEFINANCIAL POLICYFINANCIAL PROVIDERSFINANCIAL RESOURCESFINANCIAL SECTORFINANCIAL SECTOR POLICYFINANCIAL SECTOR REGULATIONSFINANCIAL STRUCTUREFINANCIAL SYSTEMFINANCIAL TRANSACTIONSFINANCING OBSTACLESFINANCING SOURCESFOREIGN BANKSFOREIGN CURRENCYFOREIGN EXCHANGEGOVERNMENT ASSISTANCEHOUSEHOLDSHOUSINGINFLATIONINFORMAL ECONOMYINFORMATION GAPINFORMATION TECHNOLOGYINTEREST PAYMENTSINTEREST RATEINTEREST RATE CEILINGINTEREST RATE CEILINGSINTEREST RATESINTERNATIONAL BANKINTERNATIONAL BANKSLABOR FORCELACK OF ACCESSLARGE FIRMSLEGAL FRAMEWORKLEGISLATIONLENDERLENDERSLENDING DECISIONSLIMITED ACCESSLINES OF CREDITLIQUIDATIONLOANLOAN APPROVALLOAN DECISIONLOAN LOSS PROVISIONSLOAN MARKETLOAN PORTFOLIOLOAN PROCESSINGLOAN PRODUCTLOAN PRODUCTSLOAN RECOVERYLOAN SIZELONG-TERM BORROWINGLONG-TERM FUNDINGLOW-INCOMEMACROECONOMIC CONDITIONSMACROECONOMIC PERFORMANCEMACROECONOMIC STABILITYMAJOR BANKSMARKET SHAREMARKET SHARESMATURITIESMICRO CREDITMICRO ENTERPRISEMICRO ENTERPRISESMICRO-ENTERPRISEMICROCREDITMONETARY POLICYMORTGAGESMULTINATIONALNOW ACCOUNTSOUTREACHOVERDRAFTOVERDUE DEBTPARTIAL CREDITPAYMENT HISTORYPAYMENT SERVICESPRIVATE BANKSPRIVATE CREDITPROBABILITY OF DEFAULTPROFITABILITYPROPERTY AS COLLATERALPUBLIC POLICYQUESTIONNAIREQUESTIONNAIRESREAL ESTATEREGULATORY FRAMEWORKRELIANCE ON COLLATERALREORGANIZATIONREPAYMENTRESERVE REQUIREMENTSRISK MANAGEMENTSALARIESSALESSAVINGS ACCOUNTSENIORSMALL BANKSSMALL ENTERPRISESOCIAL SECURITYSOCIAL SECURITY CONTRIBUTIONSSOURCE OF INFORMATIONSPECIAL SAVINGSSTAKEHOLDERSTAKEHOLDERSSTOCKSSUPPLY OF CREDITSUPPORT PROGRAMSTAXATIONTECHNICAL ASSISTANCETRAINING PROGRAMSTRANSACTIONTRANSACTION COSTSTYPE OF LOANUNFAIR COMPETITIONWAREHOUSESWORKING CAPITALWORTHWorld Bank10.1596/1813-9450-4481