The Impact on the Financial Institutions in Taiwan of the Factors for SME Financing

• Main Authors: Yeh, Yingchieh, 葉英杰
• Other Authors: 陳達新
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/01046796356250722679

碩士 === 國立臺北大學 === 企業管理學系 === 99 === This study explored the impact factors of Taiwan's financial institutions to Small and Medium Enterprise (SME) financing. SME has been the backbone of Taiwan's economic developing essentials, according to the White Paper revealed by the Small and Medium Enterprise Administration, Ministry of Economic Affairs in 2010 Taiwan pointed out that the number of SME employment are 8,066,000 people, accounting for 78.47% of the total 10,279,000 employment. Whereas the transparency of financial situation in SMEs are poorer than large enterprises has and owing to the asymmetry of information, inadequate accounting system and other factors, in addition to the weak and instability financial structure. Now the guidance of the International Basel Accord is general applied for the banks rule in capital adequacy ratio (CAR). Will banks incline to decrease the higher risk assets (portfolio) which lead banks to tighten SME financing thereby affecting to the overall economic activity? With the addition of monetary policy, banks CAR, asset, non-performing loan ratio (NPL) and whether to set up financial holding Co., are also exploring the impact on Bank Financing for SMEs important factors. This research use the data from 2006 to 2010 of Taiwan 27 banks as samples , and adopt the vertical and horizontal regression model (panel data), to discuss the correlations of Taiwan's financial institutions on implementing the SME financing. The results found that: (1) Insignificant on the influence of the implementation of CAR norms for banks financing SMEs bank industry can improve their CAR, not only by tightening the supply of SME’s loan facility, but also under the authority policy supporting and the covering of credit guarantee by Small and Medium Enterprise Credit Guarantee Fund, those may lead to spread the risk of financial institutions as well. (2) Insignificant by the influence of monetary policy on bank financing of SMEs. Amid the research period, the interest rates were down to lower standard, and due to SME are lack of bargain power, few sensitivity of the interest rate, therefore, the bank’s financing to SME would not change much by currency policy. (3) The NPL ratio effects significantly on banks to SME financing; this study observed it was a positive correlation; based on the (SME’s) asset quality has significantly improved, the financial institutions willing to take higher risk for SME financing. (4) The scale of bank assets is causing significant effect on SME financing; banks with the greater assets have more flexibility in asset allocation, hence, the ability to bear the risk is higher than banks with smaller assets. (5) Financial holding members own the significant effect on SME financing; Banks financial holding members are willing to take more risks on SME financing based on it asset scale and cross-marketing synergy.