Seminario: "Credit Guarantees and New Banking Relationships"

Autores: Will Mullins y Patricio Toro Presenta: Patricio Toro (Banco Central de Chile) Lugar y hora: Miércoles 13 de Septiembre de 2017, 13:00 hrs. Sala P 301, Edificio Placa (Diagonal Paraguay 257)
Credit guarantee schemes for bank loans are at the heart of most Governments’ strategies to help firms, and often direct vast volumes of credit. This paper examines Chile’s credit guarantee scheme for bank loans to small and medium enterprises (SMEs), which is structured like many OECD countries’ schemes. We use a regression discontinuity around the eligibility cutoff and find that credit guarantees have large positive effects on firms’ total borrowing without large increases in default rates, in contrast to the (limited) existing evidence. The scheme also has an amplification effect: firms increase borrowing from other banks in the eighteen months following a loan guarantee. Moreover, we show that the guarantees are used to build new bank relationships, an important process which is not well understood in the literature. Finally, we show that firms use the credit increase to significantly scale up their operations. These results provide evidence that credit guarantees are an effective policy tool for both boosting credit availability, and for establishing new bank relationships for SMEs.

Datos del Seminario

Fecha de inicio:
13 de Septiembre, 2017 | 13:00 hrs.

Fecha de término
13 de Septiembre, 2017 | 14:00 hrs.