Funding vs. Real Economy Shock : The Impact of the 2007-2009 Crisis on Small Firms' Credit Availability
This 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 pos...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2012/04/16212275/funding-vs-real-economy-shock-impact-2007-2009-crisis-small-firms -credit-availability http://hdl.handle.net/10986/6032 |
| id |
okr-10986-6032 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCOUNTING AGRICULTURAL SECTOR APPROVAL RATE AVAILABILITY OF CREDIT BALANCE SHEET BANK BRANCH BANK CREDIT BANK LENDING BANK LIQUIDITY BANKING ASSETS BANKING SECTOR BANKING SERVICES BANKS BOND BOND ISSUE BORROWER BORROWING BRANCHES BUSINESS ACTIVITY BUSINESS BORROWERS BUSINESS FINANCES BUSINESS LENDING BUSINESS LOAN BUSINESS LOAN APPLICATIONS BUSINESS LOANS CAPITAL LOANS CAPITAL MARKETS CENTRAL BANK CHANNELS OF CREDIT COLLATERAL COMMODITY PRICE COMPETITIVE MARKETS CONSUMER FINANCE CORRUPTION CREDIT ACCESS CREDIT APPROVAL CREDIT AVAILABILITY CREDIT CONSTRAINTS CREDIT CRUNCH CREDIT PORTFOLIO CREDIT PORTFOLIOS CREDIT QUALITY CREDIT RATIONING CREDIT RISK CROSS-BORDER BANKING CURRENCY DEVALUATION CURRENCY MISMATCHES DEBT DEBT SERVICING DEFAULT RATES DEPENDENT DEPOSIT DISBURSEMENT DIVERSIFICATION DUMMY VARIABLE DUMMY VARIABLES ECONOMIC CONDITIONS ECONOMIC CRISIS ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC SITUATION EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ENTERPRISE DEVELOPMENT EXPANSION EXTERNAL SHOCKS FAMILIES FARMERS FEDERAL RESERVE FEDERAL RESERVE BANK FEMALE BORROWERS FINANCIAL ANALYSIS FINANCIAL CONSTRAINTS FINANCIAL CONTAGION FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL LITERACY FINANCIAL MARKETS FINANCIAL PERFORMANCE FINANCIAL SERVICES FINANCIAL SITUATION FINANCIAL SYSTEMS FIRM PERFORMANCE FIRM SIZE FIRST LOAN FIXED ASSETS FOREIGN BANK FOREIGN BANK ENTRY FOREIGN CURRENCY FOREIGN CURRENCY RISK FORMAL FINANCE GENDER GOOD BANK HARD CURRENCY HOLDING HOUSEHOLDS HOUSING HOUSING PRICES INCOME STREAMS INDIVIDUAL ENTREPRENEURS INDIVIDUAL LOAN INFORMATION SYSTEM INFORMATIONAL ASYMMETRIES INTEREST RATE INTERNATIONAL BANK INTERNATIONAL BANK LENDING INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL DIVERSIFICATION INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL MARKETS LARGE FIRMS LENDER LEVELS OF CREDIT LEVELS OF DEBT LINES OF CREDIT LIQUIDITY LIQUIDITY POSITION LIQUIDITY PROBLEMS LIQUIDITY SUPPORT LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICATION LOAN APPLICATIONS LOAN APPROVAL LOAN APPROVAL RATES LOAN CATEGORY LOAN CHARACTERISTICS LOAN CLIENTS LOAN CONTRACT LOAN DEMAND LOAN MARKET LOAN OFFICER LOAN OFFICERS LOAN PORTFOLIO LOAN PRODUCT LOAN REQUEST LOAN REQUESTS LOAN SIZES LOAN TERMS LOAN VOLUMES LOCAL BANK LOCAL CURRENCY LOCAL MARKET LOCAL MARKETS MARKET ECONOMIES MARKET SHARE MARKETING STRATEGY MATURITY MEDIUM ENTERPRISES MICRO BORROWERS MICRO CREDIT MICRO ENTREPRENEURS MICRO FINANCE MICRO LOAN MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MIGRATION MORTGAGE MULTINATIONAL MULTINATIONAL BANKS NATURAL DISASTERS NUMBER OF BANKS OIL PRICES PLEDGE COLLATERAL POOL OF BORROWERS PORTFOLIO QUALITY POTENTIAL BORROWERS PRIVATE CAPITAL REAL ESTATE REMEDY REMITTANCES REPAYMENT REPAYMENT BEHAVIOR RETURN RETURN ON EQUITY RISK FACTORS RISK SHARING RISKY BORROWERS RURAL FINANCIAL INSTITUTIONS SAVINGS SAVINGS BANKS SAVINGS PRODUCTS SHAREHOLDERS SMALL BUSINESS SMALL BUSINESSES SMALL ENTERPRISES SMALL FIRMS SME SME CLIENTS SME FINANCE SME LENDING SUPPLIERS SUPPLY OF FINANCE TRADE SECTOR TRANSITION ECONOMIES TRANSPARENCY TRANSPORT URBAN AREAS VALUE OF COLLATERAL WORKING CAPITAL |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCOUNTING AGRICULTURAL SECTOR APPROVAL RATE AVAILABILITY OF CREDIT BALANCE SHEET BANK BRANCH BANK CREDIT BANK LENDING BANK LIQUIDITY BANKING ASSETS BANKING SECTOR BANKING SERVICES BANKS BOND BOND ISSUE BORROWER BORROWING BRANCHES BUSINESS ACTIVITY BUSINESS BORROWERS BUSINESS FINANCES BUSINESS LENDING BUSINESS LOAN BUSINESS LOAN APPLICATIONS BUSINESS LOANS CAPITAL LOANS CAPITAL MARKETS CENTRAL BANK CHANNELS OF CREDIT COLLATERAL COMMODITY PRICE COMPETITIVE MARKETS CONSUMER FINANCE CORRUPTION CREDIT ACCESS CREDIT APPROVAL CREDIT AVAILABILITY CREDIT CONSTRAINTS CREDIT CRUNCH CREDIT PORTFOLIO CREDIT PORTFOLIOS CREDIT QUALITY CREDIT RATIONING CREDIT RISK CROSS-BORDER BANKING CURRENCY DEVALUATION CURRENCY MISMATCHES DEBT DEBT SERVICING DEFAULT RATES DEPENDENT DEPOSIT DISBURSEMENT DIVERSIFICATION DUMMY VARIABLE DUMMY VARIABLES ECONOMIC CONDITIONS ECONOMIC CRISIS ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC SITUATION EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ENTERPRISE DEVELOPMENT EXPANSION EXTERNAL SHOCKS FAMILIES FARMERS FEDERAL RESERVE FEDERAL RESERVE BANK FEMALE BORROWERS FINANCIAL ANALYSIS FINANCIAL CONSTRAINTS FINANCIAL CONTAGION FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL LITERACY FINANCIAL MARKETS FINANCIAL PERFORMANCE FINANCIAL SERVICES FINANCIAL SITUATION FINANCIAL SYSTEMS FIRM PERFORMANCE FIRM SIZE FIRST LOAN FIXED ASSETS FOREIGN BANK FOREIGN BANK ENTRY FOREIGN CURRENCY FOREIGN CURRENCY RISK FORMAL FINANCE GENDER GOOD BANK HARD CURRENCY HOLDING HOUSEHOLDS HOUSING HOUSING PRICES INCOME STREAMS INDIVIDUAL ENTREPRENEURS INDIVIDUAL LOAN INFORMATION SYSTEM INFORMATIONAL ASYMMETRIES INTEREST RATE INTERNATIONAL BANK INTERNATIONAL BANK LENDING INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL DIVERSIFICATION INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL MARKETS LARGE FIRMS LENDER LEVELS OF CREDIT LEVELS OF DEBT LINES OF CREDIT LIQUIDITY LIQUIDITY POSITION LIQUIDITY PROBLEMS LIQUIDITY SUPPORT LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICATION LOAN APPLICATIONS LOAN APPROVAL LOAN APPROVAL RATES LOAN CATEGORY LOAN CHARACTERISTICS LOAN CLIENTS LOAN CONTRACT LOAN DEMAND LOAN MARKET LOAN OFFICER LOAN OFFICERS LOAN PORTFOLIO LOAN PRODUCT LOAN REQUEST LOAN REQUESTS LOAN SIZES LOAN TERMS LOAN VOLUMES LOCAL BANK LOCAL CURRENCY LOCAL MARKET LOCAL MARKETS MARKET ECONOMIES MARKET SHARE MARKETING STRATEGY MATURITY MEDIUM ENTERPRISES MICRO BORROWERS MICRO CREDIT MICRO ENTREPRENEURS MICRO FINANCE MICRO LOAN MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MIGRATION MORTGAGE MULTINATIONAL MULTINATIONAL BANKS NATURAL DISASTERS NUMBER OF BANKS OIL PRICES PLEDGE COLLATERAL POOL OF BORROWERS PORTFOLIO QUALITY POTENTIAL BORROWERS PRIVATE CAPITAL REAL ESTATE REMEDY REMITTANCES REPAYMENT REPAYMENT BEHAVIOR RETURN RETURN ON EQUITY RISK FACTORS RISK SHARING RISKY BORROWERS RURAL FINANCIAL INSTITUTIONS SAVINGS SAVINGS BANKS SAVINGS PRODUCTS SHAREHOLDERS SMALL BUSINESS SMALL BUSINESSES SMALL ENTERPRISES SMALL FIRMS SME SME CLIENTS SME FINANCE SME LENDING SUPPLIERS SUPPLY OF FINANCE TRADE SECTOR TRANSITION ECONOMIES TRANSPARENCY TRANSPORT URBAN AREAS VALUE OF COLLATERAL WORKING CAPITAL Berg, Gunhild Kirschenmann, Karolin Funding vs. Real Economy Shock : The Impact of the 2007-2009 Crisis on Small Firms' Credit Availability |
| geographic_facet |
Azerbaijan |
| relation |
Policy Research Working Paper ; No. 6030 |
| description |
This 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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Berg, Gunhild Kirschenmann, Karolin |
| author_facet |
Berg, Gunhild Kirschenmann, Karolin |
| author_sort |
Berg, Gunhild |
| title |
Funding vs. Real Economy Shock : The
Impact of the 2007-2009 Crisis on Small Firms' Credit
Availability |
| title_short |
Funding vs. Real Economy Shock : The
Impact of the 2007-2009 Crisis on Small Firms' Credit
Availability |
| title_full |
Funding vs. Real Economy Shock : The
Impact of the 2007-2009 Crisis on Small Firms' Credit
Availability |
| title_fullStr |
Funding vs. Real Economy Shock : The
Impact of the 2007-2009 Crisis on Small Firms' Credit
Availability |
| title_full_unstemmed |
Funding vs. Real Economy Shock : The
Impact of the 2007-2009 Crisis on Small Firms' Credit
Availability |
| title_sort |
funding vs. real economy shock : the
impact of the 2007-2009 crisis on small firms' credit
availability |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2012/04/16212275/funding-vs-real-economy-shock-impact-2007-2009-crisis-small-firms -credit-availability http://hdl.handle.net/10986/6032 |
| _version_ |
1764397172276592640 |
| spelling |
okr-10986-60322021-04-23T14:02:24Z Funding vs. Real Economy Shock : The Impact of the 2007-2009 Crisis on Small Firms' Credit Availability Berg, Gunhild Kirschenmann, Karolin ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCOUNTING AGRICULTURAL SECTOR APPROVAL RATE AVAILABILITY OF CREDIT BALANCE SHEET BANK BRANCH BANK CREDIT BANK LENDING BANK LIQUIDITY BANKING ASSETS BANKING SECTOR BANKING SERVICES BANKS BOND BOND ISSUE BORROWER BORROWING BRANCHES BUSINESS ACTIVITY BUSINESS BORROWERS BUSINESS FINANCES BUSINESS LENDING BUSINESS LOAN BUSINESS LOAN APPLICATIONS BUSINESS LOANS CAPITAL LOANS CAPITAL MARKETS CENTRAL BANK CHANNELS OF CREDIT COLLATERAL COMMODITY PRICE COMPETITIVE MARKETS CONSUMER FINANCE CORRUPTION CREDIT ACCESS CREDIT APPROVAL CREDIT AVAILABILITY CREDIT CONSTRAINTS CREDIT CRUNCH CREDIT PORTFOLIO CREDIT PORTFOLIOS CREDIT QUALITY CREDIT RATIONING CREDIT RISK CROSS-BORDER BANKING CURRENCY DEVALUATION CURRENCY MISMATCHES DEBT DEBT SERVICING DEFAULT RATES DEPENDENT DEPOSIT DISBURSEMENT DIVERSIFICATION DUMMY VARIABLE DUMMY VARIABLES ECONOMIC CONDITIONS ECONOMIC CRISIS ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC SITUATION EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ENTERPRISE DEVELOPMENT EXPANSION EXTERNAL SHOCKS FAMILIES FARMERS FEDERAL RESERVE FEDERAL RESERVE BANK FEMALE BORROWERS FINANCIAL ANALYSIS FINANCIAL CONSTRAINTS FINANCIAL CONTAGION FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL LITERACY FINANCIAL MARKETS FINANCIAL PERFORMANCE FINANCIAL SERVICES FINANCIAL SITUATION FINANCIAL SYSTEMS FIRM PERFORMANCE FIRM SIZE FIRST LOAN FIXED ASSETS FOREIGN BANK FOREIGN BANK ENTRY FOREIGN CURRENCY FOREIGN CURRENCY RISK FORMAL FINANCE GENDER GOOD BANK HARD CURRENCY HOLDING HOUSEHOLDS HOUSING HOUSING PRICES INCOME STREAMS INDIVIDUAL ENTREPRENEURS INDIVIDUAL LOAN INFORMATION SYSTEM INFORMATIONAL ASYMMETRIES INTEREST RATE INTERNATIONAL BANK INTERNATIONAL BANK LENDING INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL DIVERSIFICATION INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL MARKETS LARGE FIRMS LENDER LEVELS OF CREDIT LEVELS OF DEBT LINES OF CREDIT LIQUIDITY LIQUIDITY POSITION LIQUIDITY PROBLEMS LIQUIDITY SUPPORT LOAN LOAN AMOUNT LOAN AMOUNTS LOAN APPLICATION LOAN APPLICATIONS LOAN APPROVAL LOAN APPROVAL RATES LOAN CATEGORY LOAN CHARACTERISTICS LOAN CLIENTS LOAN CONTRACT LOAN DEMAND LOAN MARKET LOAN OFFICER LOAN OFFICERS LOAN PORTFOLIO LOAN PRODUCT LOAN REQUEST LOAN REQUESTS LOAN SIZES LOAN TERMS LOAN VOLUMES LOCAL BANK LOCAL CURRENCY LOCAL MARKET LOCAL MARKETS MARKET ECONOMIES MARKET SHARE MARKETING STRATEGY MATURITY MEDIUM ENTERPRISES MICRO BORROWERS MICRO CREDIT MICRO ENTREPRENEURS MICRO FINANCE MICRO LOAN MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MICROFINANCE SECTOR MIGRATION MORTGAGE MULTINATIONAL MULTINATIONAL BANKS NATURAL DISASTERS NUMBER OF BANKS OIL PRICES PLEDGE COLLATERAL POOL OF BORROWERS PORTFOLIO QUALITY POTENTIAL BORROWERS PRIVATE CAPITAL REAL ESTATE REMEDY REMITTANCES REPAYMENT REPAYMENT BEHAVIOR RETURN RETURN ON EQUITY RISK FACTORS RISK SHARING RISKY BORROWERS RURAL FINANCIAL INSTITUTIONS SAVINGS SAVINGS BANKS SAVINGS PRODUCTS SHAREHOLDERS SMALL BUSINESS SMALL BUSINESSES SMALL ENTERPRISES SMALL FIRMS SME SME CLIENTS SME FINANCE SME LENDING SUPPLIERS SUPPLY OF FINANCE TRADE SECTOR TRANSITION ECONOMIES TRANSPARENCY TRANSPORT URBAN AREAS VALUE OF COLLATERAL WORKING CAPITAL This 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. 2012-04-27T07:44:06Z 2012-04-27T07:44:06Z 2012-04 http://documents.worldbank.org/curated/en/2012/04/16212275/funding-vs-real-economy-shock-impact-2007-2009-crisis-small-firms -credit-availability http://hdl.handle.net/10986/6032 English Policy Research Working Paper ; No. 6030 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Azerbaijan |