Yale School of Management

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Credit Guarantee Programs for Small and Medium-Sized Enterprises

March 19, 2020

With the economic fallout from the coronavirus pandemic likely to have a particularly significant impact on small and medium-sized enterprises (SMEs), countries around the world have adopted or are considering measures intended to support such businesses.  One common tool for doing so, even in non-crisis times, is an SME credit guarantee, a program pursuant to which governments encourage banks to lend to SMEs by at least partially guaranteeing those loans. While evaluations of these programs are somewhat limited and the evidence mixed, when an event like the Asian Financial Crisis or the Global Financial Crisis occurs, countries often expand existing SME credit guarantee programs to make them more responsive to crisis conditions and/or develop new programs specifically targeted to the crisis.

Continue reading “Credit Guarantee Programs for Small and Medium-Sized Enterprises”

News in Systemic Risk: Tuesday, March 17, 2020 (10 a.m. ET)

March 17, 2020

The Fed’s actions Sunday: All in on monetary policy; partly in on liquidity support (Donald Kohn; Brookings Institution)

Bank boards - a review of post-crisis regulatory approaches (Steven Blinco, Michelle Galbarz, Stefan Hohl, Raihan Zamil; Bank for International Settlements)

The Fed's big guns are welcome, but the United States needs more fiscal action (Joseph E. Gagnon; Peterson Institute for International Economics)

Europe must go big in its macroeconomic response to COVID-19 (Jacob Funk Kirkegaard; Peterson Institute for International Economics)

Peer Review of South Africa (Financial Stability Board)

Off the radar: The rise of shadow banking in Europe (Martin Hodula; VoxEU)

Global Money Notes #27: Covid-19 and Global Dollar Funding (Zoltan Pozsar, James Sweeney; Credit Suisse)

Economic and Financial Responses to the Coronavirus (James McAndrews; Just Money)

Continue reading “News in Systemic Risk: Tuesday, March 17, 2020 (10 a.m. ET)”

News in Systemic Risk: Monday, March 16, 2020 (10 a.m. ET)

March 16, 2020

Federal Reserve issues FOMC statement (Federal Reserve Board of Governors)

Policy Steps to Address the Corona Crisis (International Monetary Fund)

The Fed and Friends: What Central Banks Did in Past 24 Hours (Simon Kennedy; Bloomberg)

Systemic Risk Modeling: How Theory Can Meet Statistics (Raphael A Espinoza, Miguel A. Segoviano, Ji Yan; International Monetary Fund)

Intermediation in the Interbank Lending Market (Ben Craig, Yiming Ma; Federal Reserve Bank of Cleveland)

Debt and financial crises: Will history repeat itself? (M. Ayhan Kose, Peter Nagle, Franziska Ohnsorge, Naotaka Sugawara; VoxEU)

Biggest U.S. Banks Halt Buybacks to Free Up Capital for Coronavirus (David Benoit; Wall Street Journal)

Continue reading “News in Systemic Risk: Monday, March 16, 2020 (10 a.m. ET)”

Credit Guarantee Programs for Small and Medium-Sized Enterprises

March 19, 2020

With the economic fallout from the coronavirus pandemic likely to have a particularly significant impact on small and medium-sized enterprises (SMEs), countries around the world have adopted or are considering measures intended to support such businesses.  One common tool for doing so, even in non-crisis times, is an SME credit guarantee, a program pursuant to which governments encourage banks to lend to SMEs by at least partially guaranteeing those loans. While evaluations of these programs are somewhat limited and the evidence mixed, when an event like the Asian Financial Crisis or the Global Financial Crisis occurs, countries often expand existing SME credit guarantee programs to make them more responsive to crisis conditions and/or develop new programs specifically targeted to the crisis.

Continue reading “Credit Guarantee Programs for Small and Medium-Sized Enterprises”

News in Systemic Risk: Tuesday, March 17, 2020 (10 a.m. ET)

March 17, 2020

The Fed’s actions Sunday: All in on monetary policy; partly in on liquidity support (Donald Kohn; Brookings Institution)

Bank boards - a review of post-crisis regulatory approaches (Steven Blinco, Michelle Galbarz, Stefan Hohl, Raihan Zamil; Bank for International Settlements)

The Fed's big guns are welcome, but the United States needs more fiscal action (Joseph E. Gagnon; Peterson Institute for International Economics)

Europe must go big in its macroeconomic response to COVID-19 (Jacob Funk Kirkegaard; Peterson Institute for International Economics)

Peer Review of South Africa (Financial Stability Board)

Off the radar: The rise of shadow banking in Europe (Martin Hodula; VoxEU)

Global Money Notes #27: Covid-19 and Global Dollar Funding (Zoltan Pozsar, James Sweeney; Credit Suisse)

Economic and Financial Responses to the Coronavirus (James McAndrews; Just Money)

Continue reading “News in Systemic Risk: Tuesday, March 17, 2020 (10 a.m. ET)”

News in Systemic Risk: Monday, March 16, 2020 (10 a.m. ET)

March 16, 2020

Federal Reserve issues FOMC statement (Federal Reserve Board of Governors)

Policy Steps to Address the Corona Crisis (International Monetary Fund)

The Fed and Friends: What Central Banks Did in Past 24 Hours (Simon Kennedy; Bloomberg)

Systemic Risk Modeling: How Theory Can Meet Statistics (Raphael A Espinoza, Miguel A. Segoviano, Ji Yan; International Monetary Fund)

Intermediation in the Interbank Lending Market (Ben Craig, Yiming Ma; Federal Reserve Bank of Cleveland)

Debt and financial crises: Will history repeat itself? (M. Ayhan Kose, Peter Nagle, Franziska Ohnsorge, Naotaka Sugawara; VoxEU)

Biggest U.S. Banks Halt Buybacks to Free Up Capital for Coronavirus (David Benoit; Wall Street Journal)

Continue reading “News in Systemic Risk: Monday, March 16, 2020 (10 a.m. ET)”