This study examines the role of loan guarantees in lines of credit granted to small businesses. Since there is evidence of simultaneity among lending terms, two-stage instrumental variable procedures are used to obtain consistent parameter estimates. The findings suggest the presence of a loan...

This paper examines the evolvement, categories, legal basis, operating characteristics, and key concerns of credit guarantee schemes (CGSs) in China. It aims at providing background note on China's CGS as well as useful references for the sustainable development of China's CGS

Credit enhancement is one of the mechanisms through which a borrower seeks to improve its debt or creditworthiness thus providing reassurance to the lender and hopefully securing better financing terms for a loan. This attempt at reassurance simply means that the borrower evinces an ability to...