The Economics of SME Finance: The roles of financial institutions and the government

Author(s)/Editor(s) Written by UESUGI Iichiro
Publisher Nikkei Business Publications, Inc.
ISBN 978-4-296-11344-6
Publication Date June 2022

Table of Contents

The author empirically examines whether SME finance is able to provide necessary liquidity and allocate funds efficiently. He focuses on the size and efficiency of the allocation of funds in firms and regions, the role of government, and the behavior of financial institutions in the lending market.

The empirical analysis clarifies various issues that have not been previously answered, such as how many zombie firms exist among small and medium-sized enterprises, what form government involvement in SME finance should take, whether the government financial institutions are putting pressure on private finance industry, and how bank mergers affect lending.

Introduction: What SME finance is supposed to contribute to

Part 1
Chapter 1: SME financing structure and changes
Chapter 2: Size and efficiency of inter-firm credit reallocation
Chapter 3: Allocation of funds and efficiency of financial institutions across regions

Part 2
Chapter 4: Government involvement in SME financing
Chapter 5: Impact of credit guarantees on SME financing
Chapter 6: Impact of direct lending by government financial institutions on SME Finance
Chapter 7: Are government financial institutions stifling private industry?
Chapter 8: Is it possible to finance SMEs without excessive reliance on personal guarantees and collateral?

Part 3
Chapter 9: Lending market concentration and corporate financing
Chapter 10: Financial institution mergers and corporate financing

Conclusion: Future of SME finance