This book is a comprehensive yet concise text that brings together all aspects of SME banking
theories and empirical studies in one text. The book contains the latest policy debates on
money creation and credit rationing and the relative role of demand-side and supply-side
factors affecting SME financing. Readers will understand the borrower-specific lender-specific
and business environment drivers of bank finance for SMEs as well as the determinants of loan
contract terms particularly the risk premium and collateral. Readers will also understand how
loan officers acquire proprietary information on SMEs and apply various lending techniques
such as financial statement lending relationship lending and credit scoring to the loan
underwriting process. In addition the book also features recent trends on the rise of
alternative finance intermediaries such as online peer-to-peer lenders and the competitive
implications for traditional banks providing loans to SMEs. Findings from this work will thus
be of particular interest to commercial bankers bank-dependent small business borrowers as
well as policy makers and researchers in central banks development banks development
agencies and international financial institutions.
