Bank Financing to Small and Medium-Sized Enterprises (SMEs) in Colombia
The objective of this paper is to shed light on current trends and policy challenges in the financing of small- and medium-sized enterprises (SMEs) by banks in Colombia. The paper is motivated by the well-documented financing gap for SMEs, whose ca...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/01/8956897/bank-financing-small-medium-sized-enterprises-smes-colombia http://hdl.handle.net/10986/6486 |
| id |
okr-10986-6486 |
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| 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 |
ACCEPTABLE COLLATERAL ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNTING ACCOUNTS RECEIVABLE AFFILIATE AGRICULTURAL SECTOR ALTERNATIVE FINANCING ALTERNATIVE SOURCES OF FINANCING AUDITING AVAILABILITY OF CREDIT BANK BRANCHES BANK DEPOSIT BANK FINANCING BANK INVOLVEMENT BANK LENDING BANKING SERVICES BANKING SYSTEM BANKRUPTCY BANKS BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS ACTIVITY BUSINESS CENTER BUSINESS CENTERS BUSINESS CREDIT BUSINESS DEVELOPMENT BUSINESS ENTERPRISE BUSINESS PLAN BUSINESS PLANS BUSINESS STRATEGY CAPITAL LOANS CAPITAL MARKETS CAPITAL STRUCTURE CAPITALIZATION CASH MANAGEMENT CHAMBERS OF COMMERCE COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL FINANCE COMMERCIAL LOAN COMMERCIAL LOANS CONSUMER CREDIT CONSUMER LENDING CONTRIBUTION CORPORATE BANKING COUNTRY COMPARISONS CREDIT APPLICATIONS CREDIT BUREAU CREDIT BUREAUS CREDIT CARD CREDIT CARDS CREDIT GUARANTEES CREDIT INFORMATION CREDIT INSTITUTION CREDIT INSTITUTIONS CREDIT LINES CREDIT MARKET CREDIT PORTFOLIO CREDIT PRODUCTS CREDIT REPORTING CREDIT REPORTS CREDIT RISK CREDIT RISK MANAGEMENT CREDIT SCORING CREDIT SCORING MODELS CREDITOR CREDITORS CREDITS CREDITWORTHINESS DEBTS DEPOSIT ACCOUNTS DEPOSITOR DEPOSITORS DEPOSITS DIVERSIFICATION DOMESTIC CREDIT ECONOMIC GROWTH ELECTRONIC BANKING EMPLOYMENT ENTERPRISE ASSISTANCE ENTREPRENEURIAL DEVELOPMENT ENTREPRENEURIAL TRAINING EXTERNAL FINANCE FACE VALUE FACTORING FAMILY BUSINESSES FINANCE COMPANIES FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL ECONOMIST FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LEASING FINANCIAL LITERACY FINANCIAL MARKETS FINANCIAL PENETRATION FINANCIAL PERFORMANCE FINANCIAL POLICY FINANCIAL PROVIDERS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SECTOR POLICY FINANCIAL SECTOR REGULATIONS FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL TRANSACTIONS FINANCING OBSTACLES FINANCING SOURCES FOREIGN BANKS FOREIGN CURRENCY FOREIGN EXCHANGE GOVERNMENT ASSISTANCE HOUSEHOLDS HOUSING INFLATION INFORMAL ECONOMY INFORMATION GAP INFORMATION TECHNOLOGY INTEREST PAYMENTS INTEREST RATE INTEREST RATE CEILING INTEREST RATE CEILINGS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKS LABOR FORCE LACK OF ACCESS LARGE FIRMS LEGAL FRAMEWORK LEGISLATION LENDER LENDERS LENDING DECISIONS LIMITED ACCESS LINES OF CREDIT LIQUIDATION LOAN LOAN APPROVAL LOAN DECISION LOAN LOSS PROVISIONS LOAN MARKET LOAN PORTFOLIO LOAN PROCESSING LOAN PRODUCT LOAN PRODUCTS LOAN RECOVERY LOAN SIZE LONG-TERM BORROWING LONG-TERM FUNDING LOW-INCOME MACROECONOMIC CONDITIONS MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MAJOR BANKS MARKET SHARE MARKET SHARES MATURITIES MICRO CREDIT MICRO ENTERPRISE MICRO ENTERPRISES MICRO-ENTERPRISE MICROCREDIT MONETARY POLICY MORTGAGES MULTINATIONAL NOW ACCOUNTS OUTREACH OVERDRAFT OVERDUE DEBT PARTIAL CREDIT PAYMENT HISTORY PAYMENT SERVICES PRIVATE BANKS PRIVATE CREDIT PROBABILITY OF DEFAULT PROFITABILITY PROPERTY AS COLLATERAL PUBLIC POLICY QUESTIONNAIRE QUESTIONNAIRES REAL ESTATE REGULATORY FRAMEWORK RELIANCE ON COLLATERAL REORGANIZATION REPAYMENT RESERVE REQUIREMENTS RISK MANAGEMENT SALARIES SALES SAVINGS ACCOUNT SENIOR SMALL BANKS SMALL ENTERPRISE SOCIAL SECURITY SOCIAL SECURITY CONTRIBUTIONS SOURCE OF INFORMATION SPECIAL SAVINGS STAKEHOLDER STAKEHOLDERS STOCKS SUPPLY OF CREDIT SUPPORT PROGRAMS TAXATION TECHNICAL ASSISTANCE TRAINING PROGRAMS TRANSACTION TRANSACTION COSTS TYPE OF LOAN UNFAIR COMPETITION WAREHOUSES WORKING CAPITAL WORTH |
| spellingShingle |
ACCEPTABLE COLLATERAL ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNTING ACCOUNTS RECEIVABLE AFFILIATE AGRICULTURAL SECTOR ALTERNATIVE FINANCING ALTERNATIVE SOURCES OF FINANCING AUDITING AVAILABILITY OF CREDIT BANK BRANCHES BANK DEPOSIT BANK FINANCING BANK INVOLVEMENT BANK LENDING BANKING SERVICES BANKING SYSTEM BANKRUPTCY BANKS BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS ACTIVITY BUSINESS CENTER BUSINESS CENTERS BUSINESS CREDIT BUSINESS DEVELOPMENT BUSINESS ENTERPRISE BUSINESS PLAN BUSINESS PLANS BUSINESS STRATEGY CAPITAL LOANS CAPITAL MARKETS CAPITAL STRUCTURE CAPITALIZATION CASH MANAGEMENT CHAMBERS OF COMMERCE COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL FINANCE COMMERCIAL LOAN COMMERCIAL LOANS CONSUMER CREDIT CONSUMER LENDING CONTRIBUTION CORPORATE BANKING COUNTRY COMPARISONS CREDIT APPLICATIONS CREDIT BUREAU CREDIT BUREAUS CREDIT CARD CREDIT CARDS CREDIT GUARANTEES CREDIT INFORMATION CREDIT INSTITUTION CREDIT INSTITUTIONS CREDIT LINES CREDIT MARKET CREDIT PORTFOLIO CREDIT PRODUCTS CREDIT REPORTING CREDIT REPORTS CREDIT RISK CREDIT RISK MANAGEMENT CREDIT SCORING CREDIT SCORING MODELS CREDITOR CREDITORS CREDITS CREDITWORTHINESS DEBTS DEPOSIT ACCOUNTS DEPOSITOR DEPOSITORS DEPOSITS DIVERSIFICATION DOMESTIC CREDIT ECONOMIC GROWTH ELECTRONIC BANKING EMPLOYMENT ENTERPRISE ASSISTANCE ENTREPRENEURIAL DEVELOPMENT ENTREPRENEURIAL TRAINING EXTERNAL FINANCE FACE VALUE FACTORING FAMILY BUSINESSES FINANCE COMPANIES FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL ECONOMIST FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LEASING FINANCIAL LITERACY FINANCIAL MARKETS FINANCIAL PENETRATION FINANCIAL PERFORMANCE FINANCIAL POLICY FINANCIAL PROVIDERS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SECTOR POLICY FINANCIAL SECTOR REGULATIONS FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL TRANSACTIONS FINANCING OBSTACLES FINANCING SOURCES FOREIGN BANKS FOREIGN CURRENCY FOREIGN EXCHANGE GOVERNMENT ASSISTANCE HOUSEHOLDS HOUSING INFLATION INFORMAL ECONOMY INFORMATION GAP INFORMATION TECHNOLOGY INTEREST PAYMENTS INTEREST RATE INTEREST RATE CEILING INTEREST RATE CEILINGS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKS LABOR FORCE LACK OF ACCESS LARGE FIRMS LEGAL FRAMEWORK LEGISLATION LENDER LENDERS LENDING DECISIONS LIMITED ACCESS LINES OF CREDIT LIQUIDATION LOAN LOAN APPROVAL LOAN DECISION LOAN LOSS PROVISIONS LOAN MARKET LOAN PORTFOLIO LOAN PROCESSING LOAN PRODUCT LOAN PRODUCTS LOAN RECOVERY LOAN SIZE LONG-TERM BORROWING LONG-TERM FUNDING LOW-INCOME MACROECONOMIC CONDITIONS MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MAJOR BANKS MARKET SHARE MARKET SHARES MATURITIES MICRO CREDIT MICRO ENTERPRISE MICRO ENTERPRISES MICRO-ENTERPRISE MICROCREDIT MONETARY POLICY MORTGAGES MULTINATIONAL NOW ACCOUNTS OUTREACH OVERDRAFT OVERDUE DEBT PARTIAL CREDIT PAYMENT HISTORY PAYMENT SERVICES PRIVATE BANKS PRIVATE CREDIT PROBABILITY OF DEFAULT PROFITABILITY PROPERTY AS COLLATERAL PUBLIC POLICY QUESTIONNAIRE QUESTIONNAIRES REAL ESTATE REGULATORY FRAMEWORK RELIANCE ON COLLATERAL REORGANIZATION REPAYMENT RESERVE REQUIREMENTS RISK MANAGEMENT SALARIES SALES SAVINGS ACCOUNT SENIOR SMALL BANKS SMALL ENTERPRISE SOCIAL SECURITY SOCIAL SECURITY CONTRIBUTIONS SOURCE OF INFORMATION SPECIAL SAVINGS STAKEHOLDER STAKEHOLDERS STOCKS SUPPLY OF CREDIT SUPPORT PROGRAMS TAXATION TECHNICAL ASSISTANCE TRAINING PROGRAMS TRANSACTION TRANSACTION COSTS TYPE OF LOAN UNFAIR COMPETITION WAREHOUSES WORKING CAPITAL WORTH Stephanou, Constantinos Rodriguez, Camila Bank Financing to Small and Medium-Sized Enterprises (SMEs) in Colombia |
| geographic_facet |
Latin America & Caribbean Colombia |
| relation |
Policy Research Working Paper; No. 4481 |
| description |
The objective of this paper is to shed
light on current trends and policy challenges in the
financing of small- and medium-sized enterprises (SMEs) by
banks in Colombia. The paper is motivated by the
well-documented financing gap for SMEs, whose causes are
complex and multi-dimensional. Based on data collection and
interviews with the authorities, a representative sample of
banks, and other relevant entities, the authors analyze the
evolution and characteristics of this market in recent
years. Bank financing to SMEs is becoming a strategic
segment for Colombian credit institutions. The current
business and risk management models for SME lending are
still relatively underdeveloped, but greater sophistication
is expected as the market matures. Important institutional
and policy constraints to SME lending remain, but are not
yet binding. In order to address these constraints before
they "begin to bite", the authors identify and
describe a potential policy reform agenda. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Stephanou, Constantinos Rodriguez, Camila |
| author_facet |
Stephanou, Constantinos Rodriguez, Camila |
| author_sort |
Stephanou, Constantinos |
| title |
Bank Financing to Small and Medium-Sized Enterprises (SMEs) in Colombia |
| title_short |
Bank Financing to Small and Medium-Sized Enterprises (SMEs) in Colombia |
| title_full |
Bank Financing to Small and Medium-Sized Enterprises (SMEs) in Colombia |
| title_fullStr |
Bank Financing to Small and Medium-Sized Enterprises (SMEs) in Colombia |
| title_full_unstemmed |
Bank Financing to Small and Medium-Sized Enterprises (SMEs) in Colombia |
| title_sort |
bank financing to small and medium-sized enterprises (smes) in colombia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/01/8956897/bank-financing-small-medium-sized-enterprises-smes-colombia http://hdl.handle.net/10986/6486 |
| _version_ |
1764400178584879104 |
| spelling |
okr-10986-64862021-04-23T14:02:31Z Bank Financing to Small and Medium-Sized Enterprises (SMEs) in Colombia Stephanou, Constantinos Rodriguez, Camila ACCEPTABLE COLLATERAL ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNTING ACCOUNTS RECEIVABLE AFFILIATE AGRICULTURAL SECTOR ALTERNATIVE FINANCING ALTERNATIVE SOURCES OF FINANCING AUDITING AVAILABILITY OF CREDIT BANK BRANCHES BANK DEPOSIT BANK FINANCING BANK INVOLVEMENT BANK LENDING BANKING SERVICES BANKING SYSTEM BANKRUPTCY BANKS BORROWER BORROWING BUSINESS ACTIVITIES BUSINESS ACTIVITY BUSINESS CENTER BUSINESS CENTERS BUSINESS CREDIT BUSINESS DEVELOPMENT BUSINESS ENTERPRISE BUSINESS PLAN BUSINESS PLANS BUSINESS STRATEGY CAPITAL LOANS CAPITAL MARKETS CAPITAL STRUCTURE CAPITALIZATION CASH MANAGEMENT CHAMBERS OF COMMERCE COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL FINANCE COMMERCIAL LOAN COMMERCIAL LOANS CONSUMER CREDIT CONSUMER LENDING CONTRIBUTION CORPORATE BANKING COUNTRY COMPARISONS CREDIT APPLICATIONS CREDIT BUREAU CREDIT BUREAUS CREDIT CARD CREDIT CARDS CREDIT GUARANTEES CREDIT INFORMATION CREDIT INSTITUTION CREDIT INSTITUTIONS CREDIT LINES CREDIT MARKET CREDIT PORTFOLIO CREDIT PRODUCTS CREDIT REPORTING CREDIT REPORTS CREDIT RISK CREDIT RISK MANAGEMENT CREDIT SCORING CREDIT SCORING MODELS CREDITOR CREDITORS CREDITS CREDITWORTHINESS DEBTS DEPOSIT ACCOUNTS DEPOSITOR DEPOSITORS DEPOSITS DIVERSIFICATION DOMESTIC CREDIT ECONOMIC GROWTH ELECTRONIC BANKING EMPLOYMENT ENTERPRISE ASSISTANCE ENTREPRENEURIAL DEVELOPMENT ENTREPRENEURIAL TRAINING EXTERNAL FINANCE FACE VALUE FACTORING FAMILY BUSINESSES FINANCE COMPANIES FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL ECONOMIST FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LEASING FINANCIAL LITERACY FINANCIAL MARKETS FINANCIAL PENETRATION FINANCIAL PERFORMANCE FINANCIAL POLICY FINANCIAL PROVIDERS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SECTOR POLICY FINANCIAL SECTOR REGULATIONS FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL TRANSACTIONS FINANCING OBSTACLES FINANCING SOURCES FOREIGN BANKS FOREIGN CURRENCY FOREIGN EXCHANGE GOVERNMENT ASSISTANCE HOUSEHOLDS HOUSING INFLATION INFORMAL ECONOMY INFORMATION GAP INFORMATION TECHNOLOGY INTEREST PAYMENTS INTEREST RATE INTEREST RATE CEILING INTEREST RATE CEILINGS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BANKS LABOR FORCE LACK OF ACCESS LARGE FIRMS LEGAL FRAMEWORK LEGISLATION LENDER LENDERS LENDING DECISIONS LIMITED ACCESS LINES OF CREDIT LIQUIDATION LOAN LOAN APPROVAL LOAN DECISION LOAN LOSS PROVISIONS LOAN MARKET LOAN PORTFOLIO LOAN PROCESSING LOAN PRODUCT LOAN PRODUCTS LOAN RECOVERY LOAN SIZE LONG-TERM BORROWING LONG-TERM FUNDING LOW-INCOME MACROECONOMIC CONDITIONS MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MAJOR BANKS MARKET SHARE MARKET SHARES MATURITIES MICRO CREDIT MICRO ENTERPRISE MICRO ENTERPRISES MICRO-ENTERPRISE MICROCREDIT MONETARY POLICY MORTGAGES MULTINATIONAL NOW ACCOUNTS OUTREACH OVERDRAFT OVERDUE DEBT PARTIAL CREDIT PAYMENT HISTORY PAYMENT SERVICES PRIVATE BANKS PRIVATE CREDIT PROBABILITY OF DEFAULT PROFITABILITY PROPERTY AS COLLATERAL PUBLIC POLICY QUESTIONNAIRE QUESTIONNAIRES REAL ESTATE REGULATORY FRAMEWORK RELIANCE ON COLLATERAL REORGANIZATION REPAYMENT RESERVE REQUIREMENTS RISK MANAGEMENT SALARIES SALES SAVINGS ACCOUNT SENIOR SMALL BANKS SMALL ENTERPRISE SOCIAL SECURITY SOCIAL SECURITY CONTRIBUTIONS SOURCE OF INFORMATION SPECIAL SAVINGS STAKEHOLDER STAKEHOLDERS STOCKS SUPPLY OF CREDIT SUPPORT PROGRAMS TAXATION TECHNICAL ASSISTANCE TRAINING PROGRAMS TRANSACTION TRANSACTION COSTS TYPE OF LOAN UNFAIR COMPETITION WAREHOUSES WORKING CAPITAL WORTH The objective of this paper is to shed light on current trends and policy challenges in the financing of small- and medium-sized enterprises (SMEs) by banks in Colombia. The paper is motivated by the well-documented financing gap for SMEs, whose causes are complex and multi-dimensional. Based on data collection and interviews with the authorities, a representative sample of banks, and other relevant entities, the authors analyze the evolution and characteristics of this market in recent years. Bank financing to SMEs is becoming a strategic segment for Colombian credit institutions. The current business and risk management models for SME lending are still relatively underdeveloped, but greater sophistication is expected as the market matures. Important institutional and policy constraints to SME lending remain, but are not yet binding. In order to address these constraints before they "begin to bite", the authors identify and describe a potential policy reform agenda. 2012-05-25T21:53:12Z 2012-05-25T21:53:12Z 2008-01 http://documents.worldbank.org/curated/en/2008/01/8956897/bank-financing-small-medium-sized-enterprises-smes-colombia http://hdl.handle.net/10986/6486 English Policy Research Working Paper; No. 4481 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 Latin America & Caribbean Colombia |