Arbeitspapier
Designing financial support for SMEs during crises: The role of bank lending
When designing schemes to help SMEs survive crises, the government typically faces asymmetric information, so that it cannot target the SMEs most worth saving. We show that the government can exploit the information in the borrower loan demand to improve policy targets compared with existing programmes. If the aim is employment protection, optimal policy should fully subsidise the funding cost of only those SMEs whose loan size is below a threshold. If the aim is economic efficiency, the government should target SMEs whose loan size is above a threshold. In general, public policy should utilise private sectors' information and expertise.
- Language
-
Englisch
- Bibliographic citation
-
Series: Tinbergen Institute Discussion Paper ; No. TI 2021-097/IV
- Classification
-
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Corporate Finance and Governance: Government Policy and Regulation
Asymmetric and Private Information; Mechanism Design
Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
- Subject
-
pandemic crisis
bank lending
unemployment
information asymmetry
small and medium-sized enterprises
- Event
-
Geistige Schöpfung
- (who)
-
Wang, Tianxi
Wang, Xuan
- Event
-
Veröffentlichung
- (who)
-
Tinbergen Institute
- (where)
-
Amsterdam and Rotterdam
- (when)
-
2021
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Wang, Tianxi
- Wang, Xuan
- Tinbergen Institute
Time of origin
- 2021
Other Objects (12)
Chronotope, technology affordances, and task design: using WeChat to facilitate Chinese learning in the classroom
Bankruptcy Codes and Risk Sharing of Currency Unions
A Macro-Financial Perspective to Analyse Maturity Mismatch and Default
Concept and implementation of a graphical editor for composite application templates
Exploring the effects of missing data on the estimation of fractal and multifractal parameters based on bootstrap method
Banks, Money, and the Zero Lower Bound on Deposit Rates
Analysis on the political construction of scale of state-level new areas
Intergenerational differences in the environmental concerns of plastic waste business owners: environmental knowledge, environmental risk exposure, and community connection as mediators
Existence and blow-up of solutions in Hénon-type heat equation with exponential nonlinearity
Existence of normalized solutions for the coupled elliptic system with quadratic nonlinearity
Improving the MPI-IO performance of applications with genetic algorithm based auto-tuning
Support for Small Businesses amid COVID-19
Chronotope, technology affordances, and task design: using WeChat to facilitate Chinese learning in the classroom
Bankruptcy Codes and Risk Sharing of Currency Unions
A Macro-Financial Perspective to Analyse Maturity Mismatch and Default
Concept and implementation of a graphical editor for composite application templates
Exploring the effects of missing data on the estimation of fractal and multifractal parameters based on bootstrap method
Banks, Money, and the Zero Lower Bound on Deposit Rates
Analysis on the political construction of scale of state-level new areas
Intergenerational differences in the environmental concerns of plastic waste business owners: environmental knowledge, environmental risk exposure, and community connection as mediators
Existence and blow-up of solutions in Hénon-type heat equation with exponential nonlinearity
Existence of normalized solutions for the coupled elliptic system with quadratic nonlinearity
Improving the MPI-IO performance of applications with genetic algorithm based auto-tuning
Support for Small Businesses amid COVID-19
Chronotope, technology affordances, and task design: using WeChat to facilitate Chinese learning in the classroom
Bankruptcy Codes and Risk Sharing of Currency Unions
A Macro-Financial Perspective to Analyse Maturity Mismatch and Default
Concept and implementation of a graphical editor for composite application templates
Exploring the effects of missing data on the estimation of fractal and multifractal parameters based on bootstrap method
Banks, Money, and the Zero Lower Bound on Deposit Rates
Analysis on the political construction of scale of state-level new areas
Intergenerational differences in the environmental concerns of plastic waste business owners: environmental knowledge, environmental risk exposure, and community connection as mediators
Existence and blow-up of solutions in Hénon-type heat equation with exponential nonlinearity
Existence of normalized solutions for the coupled elliptic system with quadratic nonlinearity
Improving the MPI-IO performance of applications with genetic algorithm based auto-tuning