Abstract
Credit guarantee schemes assist banks in lending to SMEs by overcoming collateral problems. The guarantees are used to share the risk between the bank and the guarantee institution in an agreed ratio. Thus, the bank’s risk and operation costs are lowered and its returns increased. This encourages banks to lend to SMEs who are unable to provide adequate collateral. In our study, we investigate the relationship between SMEs, banks and CGSs. We also aimed to explain the functioning of CGSs in Turkey and to evaluate their performance. In this respect, we determined some ratios of CGSs in Turkey and compared with some of the EU countries using data for a six year period from 2006 to 2011. The results show that CGSs in Turkey are increasing their performance of supporting SMEs, but they should increase their effort to reach the average level of AECM member countries
References
- Boocock, Grahame and Shariff, Moohd N. M.(2005), ‘‘Measuring the Effectiveness of Credit Guarantee Sschemes’’, International Small Business Journal, Volume 23(4).
- De Alwis, Sharmini and Basnayake B. M. R.(2009), ‘‘Credit Guarantee Schemes in Sri Lanka-Way Forward’’, Journal for SME Development, Volume 14, Taiwan.
- Green, Anke(2003); ‘‘Credit Guarantee Schemes for Small Enterprises: An
- KOSGEB(2012). Enchanging the Competitiviness of SMEs in Turkey, Ankara.
- Nitani, Miwako and Riding, Allan (2005). Promoting Enterprise Development or Subsidizing Tradition? International Small Business Journal, Volume 23, London
- OECD (2009). Faciliating Access to Finance, Discussion Paper on Credit Guarantee Schemes.
- Thorsten, Beck; Klapper, Leora and Mendoza, Juan.C.(2010), ‘‘The Typology of
- Partial Credit Guarantee Funds Around the World’’, Worldbank Policy Research Working Paper, Washington D.C. Voge, Robert C. and Adams, Dale W.(1997), ‘‘The Benefits and Costs of Loan
- Guarantee Programs’’, The Financier, Vol. 4, No. 1 and 2.
Abstract
References
- Boocock, Grahame and Shariff, Moohd N. M.(2005), ‘‘Measuring the Effectiveness of Credit Guarantee Sschemes’’, International Small Business Journal, Volume 23(4).
- De Alwis, Sharmini and Basnayake B. M. R.(2009), ‘‘Credit Guarantee Schemes in Sri Lanka-Way Forward’’, Journal for SME Development, Volume 14, Taiwan.
- Green, Anke(2003); ‘‘Credit Guarantee Schemes for Small Enterprises: An
- KOSGEB(2012). Enchanging the Competitiviness of SMEs in Turkey, Ankara.
- Nitani, Miwako and Riding, Allan (2005). Promoting Enterprise Development or Subsidizing Tradition? International Small Business Journal, Volume 23, London
- OECD (2009). Faciliating Access to Finance, Discussion Paper on Credit Guarantee Schemes.
- Thorsten, Beck; Klapper, Leora and Mendoza, Juan.C.(2010), ‘‘The Typology of
- Partial Credit Guarantee Funds Around the World’’, Worldbank Policy Research Working Paper, Washington D.C. Voge, Robert C. and Adams, Dale W.(1997), ‘‘The Benefits and Costs of Loan
- Guarantee Programs’’, The Financier, Vol. 4, No. 1 and 2.
Details
| Other ID | JA97SY93SK |
|---|---|
| Journal Section | Articles |
| Authors | |
| Publication Date | December 1, 2013 |
| Published in Issue | Year 2013 Volume: 5 Issue: 2 |