Bank size, relationship lending and SME financing: Evidence from Bangladesh

This paper examines the effect of bank size on relationship lending and how relationship lending can affect credit availability, interest rates and collateral to SMEs in the context of Bangladesh. Our empirical results suggest that SMEs with a long-term relationship with small banks have more access to finance than from large banks. However, we did not find any evidence that long-term relationship with small banks can reduce interest rates or collateral requirements for SMEs. We find evidence though that a stronger and much more exclusive relationship with a small bank can reduce the interest rates for SMEs. This mixed evidence suggests that small banks do not have full comparative advantage in processing soft information, but large banks in Bangladesh may have different lending techniques to extend loans to SMEs with similar interest rates and collateral requirements as like as small banks. Furthermore, we find evidence that small banks are giving priority to both long-term relationship and collateral requirement for SME credit risk than large banks. © Ashiqur Rahman, M. Twyeafur Rahman, Aleksandr Kljucnikov, 2016

Determinants of SME Finance: Evidence from Three Central European Countries

This paper explores the determinants of access to finance for small and medium enterprises (SMEs) in the context of three Central European countries: Czech Republic, Slovak Republic, and Hungary. The data set of the research is obtained from the BEEPS survey, which is conducted by the World Bank and the European Bank for Reconstruction and Development. This paper empirically analyses firms not only from the SMEs point of view, but also shows results for micro, small and medium enterprises separately. Additionally, we have analysed the determinants of access to finance for SMEs at each country level for an in-depth understanding of country-level variations in SME financing. The results indicate that micro firms and firms owned and operated by women are experiencing a shortage of credits from banks. On the other hand, we found a positive relationship between the pledge of collateral and access to finance. With respect to the medium firms, we found evidence that innovative firms have a larger amount of credit from banks. The empirical results also suggest that the loan size increases as the interest rates increase in particular for SMEs on the whole and for micro-firms, although the interest rate is in a negative relationship with the loan size in Czech Republic. © 2017 Ashiqur Rahman et al., published by De Gruyter Open 2017.Internal Grant Agency of FaME TBU [IGA/FaME/2017/010

Determinants of SME Finance: Evidence from Three Central European Countries

This paper explores the determinants of access to finance for small and medium enterprises (SMEs) in the context of three Central European countries: Czech Republic, Slovak Republic, and Hungary. The data set of the research is obtained from the BEEPS survey, which is conducted by the World Bank and the European Bank for Reconstruction and Development. This paper empirically analyses firms not only from the SMEs point of view, but also shows results for micro, small and medium enterprises separately. Additionally, we have analysed the determinants of access to finance for SMEs at each country level for an in-depth understanding of country-level variations in SME financing. The results indicate that micro firms and firms owned and operated by women are experiencing a shortage of credits from banks. On the other hand, we found a positive relationship between the pledge of collateral and access to finance. With respect to the medium firms, we found evidence that innovative firms have a larger amount of credit from banks. The empirical results also suggest that the loan size increases as the interest rates increase in particular for SMEs on the whole and for micro-firms, although the interest rate is in a negative relationship with the loan size in Czech Republic

Population ageing in Bangladesh and its implication on health care

In Bangladesh as in other regions of the world, the population ages 60 years and older is growing faster than the total population. Growth in the elderly population relative to other age groups challenges existing health services, family relationships and social security. With continued population ageing, the loss of cognitive function will potentially cause enormous social and economic burden on families, communities and, to the country. Using the census and secondary data, the paper investigates that increasing longevity and declining fertility are combining to convert the population age structure from young to old. This combination is resulting implications on the family health care and unmet need of health care services in the public sector. The support index shows that there will be fewer persons to support elderly population in future with implications in traditional family care. The care index shows the cost of burden for long term care associated with the shift in the population age structure. As a consequence Bangladeshi societies will confront population aging without traditional kin support