Drivers and Obstacles to Banking SMEs : The Role of Competition and the Institutional Framework
This paper studies the factors banks perceive as drivers and obstacles to financing small and medium enterprises (SMEs), focusing on the role of competition and the institutional framework. Using a survey of banks in Argentina and Chile, the paper...
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| Format: | Policy Research Working Paper |
| Language: | English |
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Washington, DC: World Bank
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/12/10063846/drivers-obstacles-banking-smes-role-competition-institutional-framework http://hdl.handle.net/10986/6306 |
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okr-10986-6306 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
ACCESS TO BANK ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESS TO FINANCING ACCESS TO INFORMATION ADVERTISEMENTS AMOUNT OF CREDIT ARBITRAGE ARREARS ASYMMETRIC INFORMATION BALANCE SHEETS BANK CREDIT BANK DEPOSITS BANK EXPOSURE BANK FINANCING BANK INVOLVEMENT BANK LENDING BANK LOANS BANK POLICY BANK SERVICES BANKING MARKET BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKRUPTCY PROCEDURES BANKS BENEFICIARIES BIDS BINDING CONSTRAINT BUSINESS ACTIVITY CAPITAL INVESTMENTS CAPITAL LOANS CAPITAL MARKETS CASH FLOWS CENTRAL BANK CENTRAL BANKS COLLATERAL COLLATERAL REQUIREMENT COLLATERAL REQUIREMENTS COMMERCIAL BANKS COMMERCIAL LOANS CONFIDENCE IN BANKS CONSOLIDATION CONSUMER CONSUMERS CONTRACT ENFORCEMENT CONTRIBUTION CONTRIBUTIONS COOPERATIVES CORPORATE BANKING CORRUPTION CREDIT BUREAU CREDIT BUREAUS CREDIT CARDS CREDIT GUARANTEE CREDIT GUARANTEES CREDIT LINE CREDIT LINES CREDIT MARKET CREDIT POLICY CREDIT RISK CUSTOMER SERVICE DEBT DEBT DEFAULT DEBT PAYMENTS DEBT RESTRUCTURING DEBTORS DEBTS DEFAULT RATES DEMAND FOR CREDIT DEPOSIT DEPOSITS DEVELOPING COUNTRIES DEVELOPMENT BANK DOCUMENTATION REQUIREMENTS DOMESTIC BANK DOMESTIC BANKS DOMESTIC CURRENCY ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMICS EMERGING ECONOMIES EMERGING MARKET EMPLOYMENT ENTREPRENEURS EXCESS LIQUIDITY EXCHANGE RATE EXCLUSION EXTERNAL FINANCING FACTORING FILING FOR BANKRUPTCY FINANCES FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL CONTRACTS FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL REFORMS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL TRANSACTION FINANCIAL TRANSACTIONS FINANCING OBSTACLES FIXED COSTS FIXED RATES FLOW OF INFORMATION FOREIGN BANKS FOREIGN EXCHANGE FOREIGN EXCHANGE TRANSACTIONS FOREIGN INVESTORS FUTURE GROWTH GREATER ACCESS GUARANTEE FUND GUARANTEE FUNDS GUARANTEE SCHEMES HOUSEHOLDS INCOME INCOME SOURCES INFORMATION GAP INSTITUTIONAL DEVELOPMENT INSTRUMENT INSURANCE INSURANCE PRODUCTS INTEREST RATE INTEREST RATE CEILING INTEREST RATE RISK INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL FINANCE INVESTMENT LOANS INVESTMENT PROJECTS JUDICIAL PROCESSES LACK OF ACCESS LARGE BANKS LARGE COMPANIES LARGE COMPANY LARGE FIRMS LAWS LEGAL CONSTRAINTS LEGAL REFORM LEGAL RIGHTS LINES OF CREDIT LIQUID ASSETS LOAN LOAN AMOUNT LOAN MARKET LOAN PORTFOLIOS LONG-TERM LENDING LONG-TERM LOANS LOW INTEREST RATES MACROECONOMIC ENVIRONMENT MACROECONOMIC STABILITY MACROECONOMIC UNCERTAINTY MARKET ENVIRONMENT MARKET SHARE MARKET STRUCTURE MEDIUM ENTERPRISES MICRO ENTERPRISES MORAL HAZARD MORTGAGES NATIONAL GUARANTEE NEW MARKETS NON-PERFORMING LOANS OUTREACH OVERDRAFTS PARTIAL CREDIT PAYMENT OBLIGATION PAYMENTS IN ADVANCE PENSION PERSONAL GUARANTEE POLITICAL ECONOMY PORTFOLIO PRIVATE BANKS PRIVATE SECTOR LOANS PROFITABILITY PROMISSORY NOTES PROPERTY RIGHTS PROTECTION OF INVESTORS PUBLIC BANKS PUBLIC CREDIT PUBLIC FUND QUESTIONNAIRE RECEIPT RECEIPTS RECESSION REGIONAL BANKS RELATIONSHIP LENDING RESEARCH ASSISTANCE RISK MANAGEMENT RISK TAKING RULE OF LAW SALE SALES SCHOLARSHIPS SECURITIES SELF-FINANCING SHAREHOLDERS SMALL BANKS SMALL BUSINESS SMALL ENTERPRISE SMALL ENTERPRISES SMALL ENTREPRENEURS TAX TAX REDUCTIONS TECHNICAL ASSISTANCE TERM CREDIT TERMS OF LOANS TOTAL DEBT TRADE FINANCING TRAINING PROGRAMS TRANSACTION TRANSPARENCY UNFAIR COMPETITION UNSECURED LOANS VARIABLE RATES VARIABLE-RATE LOANS WORKING CAPITAL |
| spellingShingle |
ACCESS TO BANK ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESS TO FINANCING ACCESS TO INFORMATION ADVERTISEMENTS AMOUNT OF CREDIT ARBITRAGE ARREARS ASYMMETRIC INFORMATION BALANCE SHEETS BANK CREDIT BANK DEPOSITS BANK EXPOSURE BANK FINANCING BANK INVOLVEMENT BANK LENDING BANK LOANS BANK POLICY BANK SERVICES BANKING MARKET BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKRUPTCY PROCEDURES BANKS BENEFICIARIES BIDS BINDING CONSTRAINT BUSINESS ACTIVITY CAPITAL INVESTMENTS CAPITAL LOANS CAPITAL MARKETS CASH FLOWS CENTRAL BANK CENTRAL BANKS COLLATERAL COLLATERAL REQUIREMENT COLLATERAL REQUIREMENTS COMMERCIAL BANKS COMMERCIAL LOANS CONFIDENCE IN BANKS CONSOLIDATION CONSUMER CONSUMERS CONTRACT ENFORCEMENT CONTRIBUTION CONTRIBUTIONS COOPERATIVES CORPORATE BANKING CORRUPTION CREDIT BUREAU CREDIT BUREAUS CREDIT CARDS CREDIT GUARANTEE CREDIT GUARANTEES CREDIT LINE CREDIT LINES CREDIT MARKET CREDIT POLICY CREDIT RISK CUSTOMER SERVICE DEBT DEBT DEFAULT DEBT PAYMENTS DEBT RESTRUCTURING DEBTORS DEBTS DEFAULT RATES DEMAND FOR CREDIT DEPOSIT DEPOSITS DEVELOPING COUNTRIES DEVELOPMENT BANK DOCUMENTATION REQUIREMENTS DOMESTIC BANK DOMESTIC BANKS DOMESTIC CURRENCY ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMICS EMERGING ECONOMIES EMERGING MARKET EMPLOYMENT ENTREPRENEURS EXCESS LIQUIDITY EXCHANGE RATE EXCLUSION EXTERNAL FINANCING FACTORING FILING FOR BANKRUPTCY FINANCES FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL CONTRACTS FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL REFORMS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL TRANSACTION FINANCIAL TRANSACTIONS FINANCING OBSTACLES FIXED COSTS FIXED RATES FLOW OF INFORMATION FOREIGN BANKS FOREIGN EXCHANGE FOREIGN EXCHANGE TRANSACTIONS FOREIGN INVESTORS FUTURE GROWTH GREATER ACCESS GUARANTEE FUND GUARANTEE FUNDS GUARANTEE SCHEMES HOUSEHOLDS INCOME INCOME SOURCES INFORMATION GAP INSTITUTIONAL DEVELOPMENT INSTRUMENT INSURANCE INSURANCE PRODUCTS INTEREST RATE INTEREST RATE CEILING INTEREST RATE RISK INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL FINANCE INVESTMENT LOANS INVESTMENT PROJECTS JUDICIAL PROCESSES LACK OF ACCESS LARGE BANKS LARGE COMPANIES LARGE COMPANY LARGE FIRMS LAWS LEGAL CONSTRAINTS LEGAL REFORM LEGAL RIGHTS LINES OF CREDIT LIQUID ASSETS LOAN LOAN AMOUNT LOAN MARKET LOAN PORTFOLIOS LONG-TERM LENDING LONG-TERM LOANS LOW INTEREST RATES MACROECONOMIC ENVIRONMENT MACROECONOMIC STABILITY MACROECONOMIC UNCERTAINTY MARKET ENVIRONMENT MARKET SHARE MARKET STRUCTURE MEDIUM ENTERPRISES MICRO ENTERPRISES MORAL HAZARD MORTGAGES NATIONAL GUARANTEE NEW MARKETS NON-PERFORMING LOANS OUTREACH OVERDRAFTS PARTIAL CREDIT PAYMENT OBLIGATION PAYMENTS IN ADVANCE PENSION PERSONAL GUARANTEE POLITICAL ECONOMY PORTFOLIO PRIVATE BANKS PRIVATE SECTOR LOANS PROFITABILITY PROMISSORY NOTES PROPERTY RIGHTS PROTECTION OF INVESTORS PUBLIC BANKS PUBLIC CREDIT PUBLIC FUND QUESTIONNAIRE RECEIPT RECEIPTS RECESSION REGIONAL BANKS RELATIONSHIP LENDING RESEARCH ASSISTANCE RISK MANAGEMENT RISK TAKING RULE OF LAW SALE SALES SCHOLARSHIPS SECURITIES SELF-FINANCING SHAREHOLDERS SMALL BANKS SMALL BUSINESS SMALL ENTERPRISE SMALL ENTERPRISES SMALL ENTREPRENEURS TAX TAX REDUCTIONS TECHNICAL ASSISTANCE TERM CREDIT TERMS OF LOANS TOTAL DEBT TRADE FINANCING TRAINING PROGRAMS TRANSACTION TRANSPARENCY UNFAIR COMPETITION UNSECURED LOANS VARIABLE RATES VARIABLE-RATE LOANS WORKING CAPITAL de la Torre, Augusto Martínez Pería, María Soledad Schmukler, Sergio L. Drivers and Obstacles to Banking SMEs : The Role of Competition and the Institutional Framework |
| relation |
Policy Research Working Paper; No. 4788 |
| description |
This paper studies the factors banks
perceive as drivers and obstacles to financing small and
medium enterprises (SMEs), focusing on the role of
competition and the institutional framework. Using a survey
of banks in Argentina and Chile, the paper shows that,
despite alleged differences in the countries'
environments regarding rules, regulations, and ease of doing
business, SMEs have become a strategic segment for most
banks in both countries. In particular, banks have begun to
target SMEs due to the significant competition in the
corporate and retail sectors. They perceive the SMEs market
as highly profitable, large, and with good prospects.
Moreover, banks are developing coping mechanisms to overcome
the particular institutional obstacles present in each
country and to compete for SMEs. Banks' interest in
SMEs is not based on government programs, yet policy action
might help reduce the cost of providing financing,
especially long-term lending. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
de la Torre, Augusto Martínez Pería, María Soledad Schmukler, Sergio L. |
| author_facet |
de la Torre, Augusto Martínez Pería, María Soledad Schmukler, Sergio L. |
| author_sort |
de la Torre, Augusto |
| title |
Drivers and Obstacles to Banking SMEs : The Role of Competition and the Institutional Framework |
| title_short |
Drivers and Obstacles to Banking SMEs : The Role of Competition and the Institutional Framework |
| title_full |
Drivers and Obstacles to Banking SMEs : The Role of Competition and the Institutional Framework |
| title_fullStr |
Drivers and Obstacles to Banking SMEs : The Role of Competition and the Institutional Framework |
| title_full_unstemmed |
Drivers and Obstacles to Banking SMEs : The Role of Competition and the Institutional Framework |
| title_sort |
drivers and obstacles to banking smes : the role of competition and the institutional framework |
| publisher |
Washington, DC: World Bank |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/12/10063846/drivers-obstacles-banking-smes-role-competition-institutional-framework http://hdl.handle.net/10986/6306 |
| _version_ |
1764399836298215424 |
| spelling |
okr-10986-63062021-04-23T14:02:30Z Drivers and Obstacles to Banking SMEs : The Role of Competition and the Institutional Framework de la Torre, Augusto Martínez Pería, María Soledad Schmukler, Sergio L. ACCESS TO BANK ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESS TO FINANCING ACCESS TO INFORMATION ADVERTISEMENTS AMOUNT OF CREDIT ARBITRAGE ARREARS ASYMMETRIC INFORMATION BALANCE SHEETS BANK CREDIT BANK DEPOSITS BANK EXPOSURE BANK FINANCING BANK INVOLVEMENT BANK LENDING BANK LOANS BANK POLICY BANK SERVICES BANKING MARKET BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKRUPTCY PROCEDURES BANKS BENEFICIARIES BIDS BINDING CONSTRAINT BUSINESS ACTIVITY CAPITAL INVESTMENTS CAPITAL LOANS CAPITAL MARKETS CASH FLOWS CENTRAL BANK CENTRAL BANKS COLLATERAL COLLATERAL REQUIREMENT COLLATERAL REQUIREMENTS COMMERCIAL BANKS COMMERCIAL LOANS CONFIDENCE IN BANKS CONSOLIDATION CONSUMER CONSUMERS CONTRACT ENFORCEMENT CONTRIBUTION CONTRIBUTIONS COOPERATIVES CORPORATE BANKING CORRUPTION CREDIT BUREAU CREDIT BUREAUS CREDIT CARDS CREDIT GUARANTEE CREDIT GUARANTEES CREDIT LINE CREDIT LINES CREDIT MARKET CREDIT POLICY CREDIT RISK CUSTOMER SERVICE DEBT DEBT DEFAULT DEBT PAYMENTS DEBT RESTRUCTURING DEBTORS DEBTS DEFAULT RATES DEMAND FOR CREDIT DEPOSIT DEPOSITS DEVELOPING COUNTRIES DEVELOPMENT BANK DOCUMENTATION REQUIREMENTS DOMESTIC BANK DOMESTIC BANKS DOMESTIC CURRENCY ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMICS EMERGING ECONOMIES EMERGING MARKET EMPLOYMENT ENTREPRENEURS EXCESS LIQUIDITY EXCHANGE RATE EXCLUSION EXTERNAL FINANCING FACTORING FILING FOR BANKRUPTCY FINANCES FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL CONTRACTS FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL REFORMS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCIAL TRANSACTION FINANCIAL TRANSACTIONS FINANCING OBSTACLES FIXED COSTS FIXED RATES FLOW OF INFORMATION FOREIGN BANKS FOREIGN EXCHANGE FOREIGN EXCHANGE TRANSACTIONS FOREIGN INVESTORS FUTURE GROWTH GREATER ACCESS GUARANTEE FUND GUARANTEE FUNDS GUARANTEE SCHEMES HOUSEHOLDS INCOME INCOME SOURCES INFORMATION GAP INSTITUTIONAL DEVELOPMENT INSTRUMENT INSURANCE INSURANCE PRODUCTS INTEREST RATE INTEREST RATE CEILING INTEREST RATE RISK INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL FINANCE INVESTMENT LOANS INVESTMENT PROJECTS JUDICIAL PROCESSES LACK OF ACCESS LARGE BANKS LARGE COMPANIES LARGE COMPANY LARGE FIRMS LAWS LEGAL CONSTRAINTS LEGAL REFORM LEGAL RIGHTS LINES OF CREDIT LIQUID ASSETS LOAN LOAN AMOUNT LOAN MARKET LOAN PORTFOLIOS LONG-TERM LENDING LONG-TERM LOANS LOW INTEREST RATES MACROECONOMIC ENVIRONMENT MACROECONOMIC STABILITY MACROECONOMIC UNCERTAINTY MARKET ENVIRONMENT MARKET SHARE MARKET STRUCTURE MEDIUM ENTERPRISES MICRO ENTERPRISES MORAL HAZARD MORTGAGES NATIONAL GUARANTEE NEW MARKETS NON-PERFORMING LOANS OUTREACH OVERDRAFTS PARTIAL CREDIT PAYMENT OBLIGATION PAYMENTS IN ADVANCE PENSION PERSONAL GUARANTEE POLITICAL ECONOMY PORTFOLIO PRIVATE BANKS PRIVATE SECTOR LOANS PROFITABILITY PROMISSORY NOTES PROPERTY RIGHTS PROTECTION OF INVESTORS PUBLIC BANKS PUBLIC CREDIT PUBLIC FUND QUESTIONNAIRE RECEIPT RECEIPTS RECESSION REGIONAL BANKS RELATIONSHIP LENDING RESEARCH ASSISTANCE RISK MANAGEMENT RISK TAKING RULE OF LAW SALE SALES SCHOLARSHIPS SECURITIES SELF-FINANCING SHAREHOLDERS SMALL BANKS SMALL BUSINESS SMALL ENTERPRISE SMALL ENTERPRISES SMALL ENTREPRENEURS TAX TAX REDUCTIONS TECHNICAL ASSISTANCE TERM CREDIT TERMS OF LOANS TOTAL DEBT TRADE FINANCING TRAINING PROGRAMS TRANSACTION TRANSPARENCY UNFAIR COMPETITION UNSECURED LOANS VARIABLE RATES VARIABLE-RATE LOANS WORKING CAPITAL This paper studies the factors banks perceive as drivers and obstacles to financing small and medium enterprises (SMEs), focusing on the role of competition and the institutional framework. Using a survey of banks in Argentina and Chile, the paper shows that, despite alleged differences in the countries' environments regarding rules, regulations, and ease of doing business, SMEs have become a strategic segment for most banks in both countries. In particular, banks have begun to target SMEs due to the significant competition in the corporate and retail sectors. They perceive the SMEs market as highly profitable, large, and with good prospects. Moreover, banks are developing coping mechanisms to overcome the particular institutional obstacles present in each country and to compete for SMEs. Banks' interest in SMEs is not based on government programs, yet policy action might help reduce the cost of providing financing, especially long-term lending. 2012-05-22T16:28:43Z 2012-05-22T16:28:43Z 2008-12 http://documents.worldbank.org/curated/en/2008/12/10063846/drivers-obstacles-banking-smes-role-competition-institutional-framework http://hdl.handle.net/10986/6306 English Policy Research Working Paper; No. 4788 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC: World Bank Publications & Research :: Policy Research Working Paper Publications & Research |