observable features, such as wealth and collateral, play an important role in determining who gets credit, in violation of the … marginal borrower in lower collateral classes. This suggests that public credit policies should be targeted at poorer classes …Credit market imperfections can prevent the poor from making profitable investments. Under asymmetric information …

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 …