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A Review Of Small-Scale Enterprises Credit Delivery Strategies In Nigeria, E. E. Inang, G. E. Ukpong
A Review Of Small-Scale Enterprises Credit Delivery Strategies In Nigeria, E. E. Inang, G. E. Ukpong
Economic and Financial Review
The paper reviews the crucial role of Small-Scale Enterprises [SSEs] in facilitating industrial development, some special advantages of existing credit schemes to small-scale enterprises, the peculiar handicaps which SSEs face, the most crucial being poor access to development finance, and highlights areas and ways in which credit guarantee and insurance schemes for SSEs could substantially contribute to their development and growth in Nigeria. Notable among the credit schemes and institutions reviewed are the Small-Scale Industries Credit Scheme (SSICS) introduced in 1971; the Nigerian Bank for Commerce and Industry (NBC!) established in 1978; the Nigerian Industrial Development Bank (NIDB); the Central …
Some Evidence On The Empirical Significance Of Credit Rationing, Allen N. Berger, Gregory F. Udell
Some Evidence On The Empirical Significance Of Credit Rationing, Allen N. Berger, Gregory F. Udell
Faculty Publications
This paper examines the credit rationing debate using detailed contract information on over one million commercial bank loans from 1977 to 1988. While commercial loan rates are "Sticky," consistent with rationing, this stickiness varies with loan contract terms in ways that are not predicted by equilibrium credit rationing theory. In addition, the proportion of new loans issued under commitment does not increase significantly when credit markets are tight, despite the fact that borrowers without commitments can be rationed whereas commitment borrowers are contractually insulated from rationing. Overall, the data suggest that equilibrium rationing is not a significant macroeconomic phenomenon.