stable finance. One efficient way to promote SME financing is through credit guarantee schemes, where the government … analysis of factors that determine optimal credit guarantee ratio. The ratio should be able to fulfill the government's goal of … results show that three categories of factors can determine the optimal credit guarantee ratio: (i) government policy, (ii …

This paper analyses the role of collateral in loan contracting when companies are financed by multiple bank lenders and … the view that collateral is a strategic instrument intended to influence the bargaining position of banks. Our result …

lending, borrower quality and collateral as a key variable in loan contract design. We used a unique data set based on the … examination of credit files of five leading German banks, thus relying on information actually used in the process of bank credit … borrower quality and the incidence or degree of collateralization. Our results indicate that the use of collateral in loan …