The role of loan commitment terms in credit allocation on the UK small firms loan guarantee scheme
Volume: 15, Issue: 1, Pages: 15 - 28
Published: Mar 31, 2017
Abstract
In this paper we provide empirical evidence concerning the nature of loan commitment contracts as reflected by individual loan contract parameters in influencing the size of bank commitments. Specifically, we consider how the quantitative allocation of credit, the loan amount, is affected or altered by changes to other components of the total loan package. By doing so we shed some more light on the types of real world trade-offs that credit...
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