SME Financing and the Financial Crisis: A Framework and Some Issues

  • Gregory F. Udell
Part of the Contributions to Economics book series (CE)


Studies of net job creation generally confirm the importance of the SME sector as an engine that can drive the economy out of a recession. The SME sector cannot perform this role without access to external finance. This article examines new paradigms that have expanded our understanding of how SME loans are underwritten and how underwriting changes during a macro financial shock. We also use these paradigms to examine two interesting issues related to SME financing during the current financial crisis: the behavior of foreign-owned banks particularly in developing economies and the efficacy of government guarantee programs.


Financial Crisis Trade Credit Real Estate Market Saving Bank Small Bank 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  1. 1.Chase Chair of Banking and Finance, Kelly School of BusinessIndiana University at BloomingtonBloomingtonUSA

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