Innovative Credit Guarantee Schemes with equity-for-guarantee swaps

Discussion Paper on Credit Guarantee Schemes

Entrepreneurial finance with equity-for-guarantee swap and idiosyncratic risk

We consider a risk-averse entrepreneur who invests in a project with idiosyncratic risk. In contrast to the literature, we assume the entrepreneur is unable to get a loan from a bank directly because of the low creditability of the entrepreneur and so an innovative financial contract, named equity-forguarantee swap, is signed among a bank, an insurer, and the entrepreneur. It is shown that the ...

NetRating: Credit Risk Evaluation for Loan Guarantee Chain in China

Guaranteed loan is a common way for an enterprise to raise money from banks without any collateral in China. It is welcome for both enterprises and banks when the economy is up. However, the situation becomes tough as long as the economy is down. The financial risk caused by guaranteed loans not only makes the enterprise which takes the loan in trouble but also spreads over the intertwined netw...

Sme and Entrepreneurship Financing: the Role of Credit Guarantee Schemes and Mutual Guarantee Societies in Supporting Finance for Small and Medium-sized Enterprises

Evaluation of Credit Guarantee Policy using Propensity Score Matching

In the aftermath of the Asian financial crisis in Korea, the credit guarantee policy was used as an instrument by the government to support small and medium enterprises (SMEs). However, the effect of the credit guarantee has not been carefully studied and the policy has been criticized for impairing development of innovative private financial sector and for making SMEs highly dependent on gover...