A Comparative Analysis of SME Credit Guarantee Policies—A Taiwan Commercial Bank as an Example

• Main Authors: Chuan-Pao Chen, 陳銓葆
• Other Authors: Dr. David M. Chen
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/11524529538337550424

碩士 === 輔仁大學 === 金融研究所 === 98 === Under credit crunch, the financial crisis in 2007 turned into an economic recession. Financial institutions riding the trend of globalization and large scale operation saw themselves badly hurt in the wave of the financial tsunami and became more and more conservative on domestic SME financing. In order to reduce the unemployment rate, governments then have to rely on their own means to induce financial institutions to extend credit and to help SMEs stay in business. Yet, banks’ decision to extend credit depends almost totally on the coverage of financial guarantees provided by the SMEs Credit Guarantee Fund instead of internal credit assessment. This thesis proposes SME investments as an alternative to loans that has the potential to offer both banks and the SMEs Credit Guarantee Fund a relief in undertaking credit risks without commensurate returns. Coupled with governmental incentives provided to foster growth of triple-bottom-line SMEs, Taiwan economy, environment and society can all benefit from such an initiative.