Berg, GunhildKirschenmann, Karolin2012-04-272012-04-272012-04https://hdl.handle.net/10986/6032This paper analyzes the impact of two distinct shocks stemming from the cross-border transmission of the 2007-2009 crisis on credit availability for small firms. The paper uses data from AccessBank Azerbaijan which was affected in its liquidity position during the second and third quarters of 2008 by delays in its refinancing. The Azeri real economy was hit by the global crisis from the fourth quarter of 2008 onwards with a combined decline in oil prices, exports, remittances, and domestic demand. Therefore, a pure supply side shock con be contrasted with a real economy shock that hit exactly when the bank's funding position strengthened again. The paper finds that during the funding shock (potential) borrowers are discouraged from applying for loans. However, for those applications made, the likelihood of loan approval is not affected. The real economy shock, in contrast, reduces the approval likelihood for SME loans in particular, while agro and micro loans are considerably less affected. Finally, bank relationships increase credit availability in good as well as in bad times.CC BY 3.0 IGOACCESS TO CREDITACCESS TO EXTERNAL FINANCEACCOUNTINGAGRICULTURAL SECTORAPPROVAL RATEAVAILABILITY OF CREDITBALANCE SHEETBANK BRANCHBANK CREDITBANK LENDINGBANK LIQUIDITYBANKING ASSETSBANKING SECTORBANKING SERVICESBANKSBONDBOND ISSUEBORROWERBORROWINGBRANCHESBUSINESS ACTIVITYBUSINESS BORROWERSBUSINESS FINANCESBUSINESS LENDINGBUSINESS LOANBUSINESS LOAN APPLICATIONSBUSINESS LOANSCAPITAL LOANSCAPITAL MARKETSCENTRAL BANKCHANNELS OF CREDITCOLLATERALCOMMODITY PRICECOMPETITIVE MARKETSCONSUMER FINANCECORRUPTIONCREDIT ACCESSCREDIT APPROVALCREDIT AVAILABILITYCREDIT CONSTRAINTSCREDIT CRUNCHCREDIT PORTFOLIOCREDIT PORTFOLIOSCREDIT QUALITYCREDIT RATIONINGCREDIT RISKCROSS-BORDER BANKINGCURRENCY DEVALUATIONCURRENCY MISMATCHESDEBTDEBT SERVICINGDEFAULT RATESDEPENDENTDEPOSITDISBURSEMENTDIVERSIFICATIONDUMMY VARIABLEDUMMY VARIABLESECONOMIC CONDITIONSECONOMIC CRISISECONOMIC GROWTHECONOMIC POLICYECONOMIC SITUATIONEMERGING MARKETEMERGING MARKET ECONOMIESEMERGING MARKETSENTERPRISE DEVELOPMENTEXPANSIONEXTERNAL SHOCKSFAMILIESFARMERSFEDERAL RESERVEFEDERAL RESERVE BANKFEMALE BORROWERSFINANCIAL ANALYSISFINANCIAL CONSTRAINTSFINANCIAL CONTAGIONFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL DISTRESSFINANCIAL INSTITUTIONSFINANCIAL INTEGRATIONFINANCIAL INTERMEDIATIONFINANCIAL LIBERALIZATIONFINANCIAL LITERACYFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL SERVICESFINANCIAL SITUATIONFINANCIAL SYSTEMSFIRM PERFORMANCEFIRM SIZEFIRST LOANFIXED ASSETSFOREIGN BANKFOREIGN BANK ENTRYFOREIGN CURRENCYFOREIGN CURRENCY RISKFORMAL FINANCEGENDERGOOD BANKHARD CURRENCYHOLDINGHOUSEHOLDSHOUSINGHOUSING PRICESINCOME STREAMSINDIVIDUAL ENTREPRENEURSINDIVIDUAL LOANINFORMATION SYSTEMINFORMATIONAL ASYMMETRIESINTEREST RATEINTERNATIONAL BANKINTERNATIONAL BANK LENDINGINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL DIVERSIFICATIONINTERNATIONAL ECONOMICSINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL MARKETSLARGE FIRMSLENDERLEVELS OF CREDITLEVELS OF DEBTLINES OF CREDITLIQUIDITYLIQUIDITY POSITIONLIQUIDITY PROBLEMSLIQUIDITY SUPPORTLOANLOAN AMOUNTLOAN AMOUNTSLOAN APPLICATIONLOAN APPLICATIONSLOAN APPROVALLOAN APPROVAL RATESLOAN CATEGORYLOAN CHARACTERISTICSLOAN CLIENTSLOAN CONTRACTLOAN DEMANDLOAN MARKETLOAN OFFICERLOAN OFFICERSLOAN PORTFOLIOLOAN PRODUCTLOAN REQUESTLOAN REQUESTSLOAN SIZESLOAN TERMSLOAN VOLUMESLOCAL BANKLOCAL CURRENCYLOCAL MARKETLOCAL MARKETSMARKET ECONOMIESMARKET SHAREMARKETING STRATEGYMATURITYMEDIUM ENTERPRISESMICRO BORROWERSMICRO CREDITMICRO ENTREPRENEURSMICRO FINANCEMICRO LOANMICROENTERPRISESMICROFINANCEMICROFINANCE INSTITUTIONSMICROFINANCE SECTORMIGRATIONMORTGAGEMULTINATIONALMULTINATIONAL BANKSNATURAL DISASTERSNUMBER OF BANKSOIL PRICESPLEDGE COLLATERALPOOL OF BORROWERSPORTFOLIO QUALITYPOTENTIAL BORROWERSPRIVATE CAPITALREAL ESTATEREMEDYREMITTANCESREPAYMENTREPAYMENT BEHAVIORRETURNRETURN ON EQUITYRISK FACTORSRISK SHARINGRISKY BORROWERSRURAL FINANCIAL INSTITUTIONSSAVINGSSAVINGS BANKSSAVINGS PRODUCTSSHAREHOLDERSSMALL BUSINESSSMALL BUSINESSESSMALL ENTERPRISESSMALL FIRMSSMESME CLIENTSSME FINANCESME LENDINGSUPPLIERSSUPPLY OF FINANCETRADE SECTORTRANSITION ECONOMIESTRANSPARENCYTRANSPORTURBAN AREASVALUE OF COLLATERALWORKING CAPITALWorld Bank10.1596/1813-9450-6030