What Lies Behind Credit Rationing? A Survey of the Literature

43 Pages Posted: 11 Sep 2012

See all articles by Annie Bellier

Annie Bellier

University of Cergy-Pontoise - THEMA

Wafa Sayeh

University of Cergy-Pontoise - THEMA

Stephanie Serve

University of Cergy-Pontoise - THEMA

Date Written: June 2012

Abstract

Since World War II, the concept of credit rationing (CR) has been a topic of extensive investigations, both theoretical and empirical. From the theoretical point of view, several attempts have been made to define the extent to which a firm can be identified as credit rationed in macroeconomic and microeconomic financial frameworks. In the context of the current financial crisis, CR is strategically important given the financial difficulties faced by small business firms. The first purpose of this article is to provide an historical context for the theoretical frameworks of CR to analyze the existing definitions and typologies. From an empirical point of view, the main obstacle is that a direct measure of CR is not directly observable, considering that the answer is given by the firm and/or the bank. In light of the previously defined typology, the second purpose of this article is to present both the measures of CR and the main driving factors that have been tested in the empirical literature. Special attention is paid to the supply-demand interaction via the impact of the bank relationship on CR.

Keywords: credit rationing, small business, bank relationship

JEL Classification: G14, G21, G32

Suggested Citation

Bellier, Annie and Sayeh, Wafa and Serve, Stephanie, What Lies Behind Credit Rationing? A Survey of the Literature (June 2012). Available at SSRN: https://ssrn.com/abstract=2144801 or http://dx.doi.org/10.2139/ssrn.2144801

Annie Bellier

University of Cergy-Pontoise - THEMA ( email )

33 boulevard du port
F-95011 Cergy-Pontoise Cedex, 95011
France

Wafa Sayeh

University of Cergy-Pontoise - THEMA ( email )

33 boulevard du port
F-95011 Cergy-Pontoise Cedex, 95011
France

Stephanie Serve (Contact Author)

University of Cergy-Pontoise - THEMA ( email )

33 bd du Port
Cergy Pontoise, 95011
France

HOME PAGE: http://www.u-cergy.fr/rubrique775.html

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