Berger, Allen N.Udell, Gregory F.2012-06-202012-06-202005-12https://hdl.handle.net/10986/8553The authors propose a more complete conceptual framework for analysis of credit availability for small and medium enterprises (SMEs). In this framework, lending technologies are the key conduit through which government policies and national financial structures affect credit availability. They emphasize a causal chain from policy to financial structures which affect the feasibility and profitability of different lending technologies. These technologies, in turn, have important effects on SME credit availability. Financial structures include the presence of different financial institution types and the conditions under which they operate. Lending technologies include several transactions technologies, plus relationship lending. The authors argue that the framework implicit in most of the literature is oversimplified, neglects key elements of the chain, and often yields misleading conclusions. A common oversimplification is the treatment of transactions technologies as a homogeneous group, unsuitable for serving informationally opaque SMEs, and a frequent misleading conclusion is that large institutions are disadvantaged in lending to opaque SMEs.CC BY 3.0 IGOACCOUNTINGACCOUNTING STANDARDSADVERSE SELECTIONAGENCY PROBLEMSASSETSBANK LENDINGBANK PRIVATIZATIONBANKRUPTCYBANKRUPTCY PROCEDURESBANKSCHECKING ACCOUNTSCOMMERCIAL BANKSCOMMERCIAL CREDITCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCONVENTIONAL FACTORINGCREDIT RISKDEBTDEPOSIT ACCOUNTSDEVELOPMENT BANKSECONOMIC PERFORMANCEECONOMIC SYSTEMSECONOMIC THEORYECONOMIES OF SCALEEMPLOYMENTEXOGENOUS VARIABLESFACTORINGFEDERAL RESERVE SYSTEMFINANCIAL CONTRACTSFINANCIAL INSTITUTIONSFINANCIAL RATIOSFINANCIAL SERVICESFINANCIAL STRUCTURESFINANCIAL SYSTEMSFIXED ASSETFIXED ASSETSFOREIGN BANKSFOREIGN INVESTMENTGDPGNPGOVERNMENT POLICIESGOVERNMENT SUBSIDIESIMPLICIT CONTRACTINEFFICIENCYINTEREST RATEINTEREST RATESINVENTORYLAWSLIQUIDATIONLIQUIDATION VALUEMANDATESMARKET DISCIPLINEMARKET VALUEMERGERSMORAL HAZARDORGANIZATIONAL FORMPREDICTIONSPRESENT VALUEPRICE DISCRIMINATIONPROFITABILITYPROPERTY RIGHTSRELATIONSHIP LENDINGSMALL BANKSSMALL BUSINESSSTATE OWNERSHIPSTATEMENTSTATEMENTSSUBSIDIARYTAX RATETRADE CREDITTRADE CREDITORSTRANSITION ECONOMIESWORKING CAPITALWorld Bank10.1596/1813-9450-3795