Article ID Journal Published Year Pages File Type
11007922 International Review of Economics & Finance 2018 27 Pages PDF
Abstract
This paper analyses lending to small and medium-sized enterprises (SMEs), including the lending technologies used and the default risks for loans of different types using loan data on Chinese unlisted SMEs from 2010 to 2013. We find that both credit loans and third-party-guaranteed loans are examples of transaction lending. However, due to the risk-sharing mechanism, the lending technology used by banks for third-party-guaranteed loans is not a common transaction lending technology. In terms of default risk, there is no significant difference between credit loans and collateralized loans. In contrast, the default risk for third-party-guaranteed loans is higher.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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