A model for calculating optimal credit guarantee fee for small and medium-sized enterprises

A credit guarantee scheme is a method for promoting lending to small and medium-sized enterprises (SMEs) by formal financial institutions. It reduces information asymmetry SMEs’ collateral burden, but at cost of fee. The paper provides theoretical model calculating the optimal In empirical part, this study examines whether selected macroeconomic variables health SMEs have statistically significant impact on default risk ratio loans – main determinant Principle component analysis (PCA) two vector error correction (VECM) models are applied sample 1363 SMEs. Empirical results support our hypothesis that fee should be different sound risky in order avoid moral hazard, also according state.