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dc.titleCredit Rationing: The Relative Importance of Internal and External Factors
dc.contributor.authorTámola, Alejandro
dc.contributor.authorFernández Díez, María Carmen
dc.contributor.authorJoachín, Arturo
dc.contributor.orgunitConnectivity, Markets and Finance Division
dc.coverageLatin America
dc.date.available2024-11-04T00:11:00
dc.date.issue2024-11-04T00:11:00
dc.description.abstractBoth internal and external factors can contribute to the informational frictions that drive credit rationing among firms. This study uses data from enterprise surveys and other sources to evaluate the relative contribution of internal and external variables in determining the likelihood of credit rationing. The results indicate that external factors are more important than internal ones in their association with the marginal probability of experiencing credit rationing. From these key results, we derive two policy recommendations. First, policy interventions promoting reforms to reduce inflation, decrease informality, improve firm transparency, and make judicial processes more effective are likely to reduce credit rationing. Second, while credit support programs are likely to be effective in reducing credit rationing, it is advisable to design such programs with mechanisms aimed at improving formalization and transparency.
dc.format.extent38
dc.identifier.doihttp://dx.doi.org/10.18235/0013229
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Credit-Rationing-The-Relative-Importance-of-Internal-and-External-Factors.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectCredit Risk
dc.subjectSmall Business
dc.subjectDebtor Finance
dc.subjectCredit Market
dc.subjectFiscal Transparency
dc.subjectBank Loan
dc.subjectFinance
dc.subjectForest Resource
dc.subjectCredit Constraint
dc.subjectRating
dc.subjectInflation
dc.subject.jelcodeD22 - Firm Behavior: Empirical Analysis
dc.subject.jelcodeG20 - Financial Institutions and Services: General
dc.subject.jelcodeG28 - Government Policy and Regulation
dc.subject.keywordscredit rationing;credit markets;informational frictions;transparency
idb.identifier.pubnumberIDB-TN-03035
idb.operationRG-E1994
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