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:: Volume 9, Issue 1 (Winter 2014) ::
J. Mon. Ec. 2014, 9(1): 117-146 Back to browse issues page
Impact of Basel II Capital Accord on Small and Medium Size Enterprises (SME): An Empirical Study on a Group of Export Oriented SMEs
Pouya Baghdadi *1, Ahmad Akbari2, Ali Hassanzadeh3, Seyed-Morteza Zekavat4, Farhad Taghizadeh-Hesary5
1- University of Sistan and Baluchestan
2- University of Sistan and Baluchestan; Iranian Research Organization for Science and Technology
3- Islamic Azad University, South Tehran Branch
4- Export Development Bank of Iran
5- Keio University, Japan; Asian Development Bank Institute
Abstract:   (5776 Views)

The purpose of this study is to find the relationship between lending to Small and Medium-size Exporter Enterprises (E-SMEs) and the use of Basel II Capital Accord for the first time in the banking system of Iran. Results showed that 96.69 percent of small firms were in the very low risk category of credit portfolio. This proof explains a consistent and balanced relationship between risk- weighted assets distribution system (RWA) in Basel II Capital Accord and firms’ size. In other words, the smaller the size of the firm, the smaller their risk-share in the credit portfolio would be. Furthermore, according to the results found by Probit regression with an endogenous covariate, the higher ratings the firm recovers, the less risk-share in bank’s portfolio the firm will enjoy. Thus, it is indispensable that banks, chiefly specialized banks, should take action towards the allocation of parts of the credit portfolio to SME exporter financing. Accordingly, it is essential to design particular credit scoring models for these firms.

JEL Classification: G28, G21

Keywords: Exporter SMEs, Basel II, Capital Requirements, Probit Model, Credit Risk
Full-Text [PDF 1245 kb]   (1919 Downloads)    
Type of Study: Applicable | Subject: Monetary Economics
Received: 2014/11/23 | Accepted: 2016/10/22 | Published: 2016/10/22
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Baghdadi P, Akbari A, Hassanzadeh A, Zekavat S, Taghizadeh-Hesary F. Impact of Basel II Capital Accord on Small and Medium Size Enterprises (SME): An Empirical Study on a Group of Export Oriented SMEs. J. Mon. Ec.. 2014; 9 (1) :117-146
URL: http://jme.mbri.ac.ir/article-1-103-en.html

Volume 9, Issue 1 (Winter 2014) Back to browse issues page
Journal of Money and Economy Journal of Money And Economy
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