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Korean J Financ Stud > Volume 46(3); 2017 > Article
Korean Journal of Financial Studies 2017;46(3):723-754.
DOI: https://doi.org/10.26845/KJFS.2017.06.46.3.723    Published online June 30, 2017.
Does Credit Rationing Really Exist in Korea? Evidence from the SME Loan Market
Soo Jin Lee, Hyungjoon Ray Lim
Does Credit Rationing Really Exist in Korea? Evidence from the SME Loan Market
SooJinLee, HyungjoonRayLim
Korea Institute of Finance
Abstract
It is widely believed, without compelling empirical evidence, that credit rationing is prevalent in small and medium-sized enterprise (SME) lending. Using the Korean SME loan data from 2013 to 2014, we measure the intensive margin of credit rationing. In the model, we incorporate various firm-, bank-, and loan-specific factors such as firm age, bank capital adequacy, and collateral to endogenously identify loan supply and demand curve. In contrast to the widely held belief, the results suggest that Korean SMEs are hardly credit rationed. The portion of loans with the credit rationing probability larger than 80% is estimated to be consistently less than 0.4% during the sample period.
Key Words: Bank-Firm Relationship,Credit Rationing,Disequilibrium Model,Maximum Likelihood Estimation,SME Loan,은행-기업간 관계,신용할당,불균형모형,최우추정법,중소기업대출


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