The Impact of the 2008-2009 Global Crisis on Loan Applications and Access to Finance
In this study, we examine new loan applications made by manufacturing firms in Eastern Europe and Central Asia. We compare the pre-global crisis and post-global crisis loan applications. We find that fewer manufacturers applied for a new loan post-crisis (45.89% vs 29.91%). When we compare the main...
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Academic Research and Publishing UG
2023-06-01
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| Series: | Financial Markets, Institutions and Risks |
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| Online Access: | https://armgpublishing.com/wp-content/uploads/2023/07/FMIR_2_2023_2.pdf |
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| author | Halil D. Kaya |
| author_facet | Halil D. Kaya |
| author_sort | Halil D. Kaya |
| collection | DOAJ |
| description | In this study, we examine new loan applications made by manufacturing firms in Eastern Europe and Central Asia. We compare the pre-global crisis and post-global crisis loan applications. We find that fewer manufacturers applied for a new loan post-crisis (45.89% vs 29.91%). When we compare the main reasons for manufacturers not applying for a new loan pre- vs. post-crisis, we find that, after the crisis, more firms stated that there was no need for a loan. Also, more firms stated that application procedures were complex, interest rates were not favorable, and they did not think it would be approved. On the other hand, fewer manufacturers stated that post-crisis, collateral requirement was too high, the size of loan and maturity were insufficient, and it was necessary to make informal payments (i.e., corruption). Overall, our findings suggest that while certain aspects of financing for manufacturers improved after the crisis, others deteriorated. We also find that there was a statistically significant decrease in the percentage of manufacturers that had their financial statements checked/certified by an external auditor. Finally, post-crisis, “access to finance” was seen as a smaller obstacle by manufacturers. We conclude that the reason for fewer manufacturers applying for a new loan post-crisis was not all measures of “access to finance”; it was rather the lack of a need for a new loan and certain aspects of “Access to finance”. |
| format | Article |
| id | doaj-art-0af0ca00041b44aab182a8ccf8434b1a |
| institution | OA Journals |
| issn | 2521-1250 2521-1242 |
| language | English |
| publishDate | 2023-06-01 |
| publisher | Academic Research and Publishing UG |
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| series | Financial Markets, Institutions and Risks |
| spelling | doaj-art-0af0ca00041b44aab182a8ccf8434b1a2025-08-20T02:09:35ZengAcademic Research and Publishing UGFinancial Markets, Institutions and Risks2521-12502521-12422023-06-0172121710.61093/fmir.7(2).12-17.2023The Impact of the 2008-2009 Global Crisis on Loan Applications and Access to FinanceHalil D. Kaya0https://orcid.org/0000-0002-7535-9857Department of Accounting and Finance, College of Business and Technology, Northeastern State University, USAIn this study, we examine new loan applications made by manufacturing firms in Eastern Europe and Central Asia. We compare the pre-global crisis and post-global crisis loan applications. We find that fewer manufacturers applied for a new loan post-crisis (45.89% vs 29.91%). When we compare the main reasons for manufacturers not applying for a new loan pre- vs. post-crisis, we find that, after the crisis, more firms stated that there was no need for a loan. Also, more firms stated that application procedures were complex, interest rates were not favorable, and they did not think it would be approved. On the other hand, fewer manufacturers stated that post-crisis, collateral requirement was too high, the size of loan and maturity were insufficient, and it was necessary to make informal payments (i.e., corruption). Overall, our findings suggest that while certain aspects of financing for manufacturers improved after the crisis, others deteriorated. We also find that there was a statistically significant decrease in the percentage of manufacturers that had their financial statements checked/certified by an external auditor. Finally, post-crisis, “access to finance” was seen as a smaller obstacle by manufacturers. We conclude that the reason for fewer manufacturers applying for a new loan post-crisis was not all measures of “access to finance”; it was rather the lack of a need for a new loan and certain aspects of “Access to finance”.https://armgpublishing.com/wp-content/uploads/2023/07/FMIR_2_2023_2.pdfaccess to financemanufacturersglobal crisiscorruptionloanseastern europecentral asia |
| spellingShingle | Halil D. Kaya The Impact of the 2008-2009 Global Crisis on Loan Applications and Access to Finance Financial Markets, Institutions and Risks access to finance manufacturers global crisis corruption loans eastern europe central asia |
| title | The Impact of the 2008-2009 Global Crisis on Loan Applications and Access to Finance |
| title_full | The Impact of the 2008-2009 Global Crisis on Loan Applications and Access to Finance |
| title_fullStr | The Impact of the 2008-2009 Global Crisis on Loan Applications and Access to Finance |
| title_full_unstemmed | The Impact of the 2008-2009 Global Crisis on Loan Applications and Access to Finance |
| title_short | The Impact of the 2008-2009 Global Crisis on Loan Applications and Access to Finance |
| title_sort | impact of the 2008 2009 global crisis on loan applications and access to finance |
| topic | access to finance manufacturers global crisis corruption loans eastern europe central asia |
| url | https://armgpublishing.com/wp-content/uploads/2023/07/FMIR_2_2023_2.pdf |
| work_keys_str_mv | AT halildkaya theimpactofthe20082009globalcrisisonloanapplicationsandaccesstofinance AT halildkaya impactofthe20082009globalcrisisonloanapplicationsandaccesstofinance |