Has the Financial Crisis Induced a Credit Crunch for Small and Medium-Sized Enterprises in Germany?

Langue : anglais

Edité par GRIN Verlag, GRIN Verlag Jul 2009, 2009

3640382285 / 9783640382286

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This item is printed on demand - Print on Demand Titel. Neuware -Master's Thesis from the year 2009 in the subject Business economics - Miscellaneous, grade: 1,3, Otto Beisheim School of Management Vallendar, language: English, abstract: The following MBA-Thesis analyses how the financial crisis has affected different pre-conditions for the credit lending behaviour of banks. Additionally the demand for loans of potential borrowers will be considered. A ¿credit crunch¿ is defined as a restriction of the credit supply which leads to a mismatch of supply and demand.It will be shown that the financial crisis caused a still ongoing macroeconomic contraction. The macroeconomic contraction has a direct effect on the calculation of rating grades which downgrade. Parameters of credit risk assessments will be analysed and their pro-cyclicality will be tested. Corporate rating grades already downgraded significantly in 2008.The downgrading of firms has an effect on the credit pricing which influences also the credit demand. This effect will be shown by explaining a basic cost-plus loan pricing model. The sensitivity of the loan pricing towards changes of attributed capital, refinancing costs and cost of default will be exemplarily shown. It will be shown that the rating downgrades have a significant effect on the credit price. This price increase which might affect the demand is however per definition not a ¿credit crunch¿.The Basel II Accord regulation links the requirements for banks¿ capital to rating grades. Prior to the financial crisis the capital of banks has already been close to the regulatory minimum level. This made the banks vulnerable for impairments on assets. As new sources for capitalisation and possibilities to off-balance assets are currently limited banks have to reduce risk-weighted assets to fulfil the minimum capital requirements.A reduction of risk-weighted assets could be inter alia done by a restrictive corporate lending policy. The restrictions on banks¿ capital will not decrease quickly as especially impairments on the credit book might increase due to upcoming defaults.Nevertheless a supply restriction gets only visible if the demand for credits is robust. The demand correlates among other points especially to the investments which have decreased since the end of 2008.Books on Demand GmbH, Überseering 33, 22297 Hamburg 100 pp. Englisch.…

N° de réf. du vendeur 9783640382286

Titre
Has the Financial Crisis Induced a Credit Crunch for Small and Medium-Sized Enterprises in Germany?
Auteur
Christopher Heine
Éditeur
GRIN Verlag, GRIN Verlag Jul 2009
Année de publication
2009
État de l'article
Neu
Reliure
Taschenbuch
Langue
anglais
ISBN à 10 chiffres
3640382285
ISBN à 13 chiffres
9783640382286
Poids de l'article
157 grammes
Dimensions
210x148x8 mm

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