Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/114688
Authors: 
Keasey, Kevin
Watson, Robert
Year of Publication: 
1995
Citation: 
[Journal:] Journal of Small Business Finance [ISSN:] 1057-2287 [Volume:] 4 [Year:] 1995 [Issue:] 2/3 [Pages:] 143-163
Abstract: 
This paper examines the characteristics of UK small firm bank finance and the causes of the frequently strained relationship between small firms and banks in the UK. Debt, credit rationing, and call option problems under the UK system are examined. The bank’s solutions including the potentially harmful “secured overdraft system” are then considered. It is argued that the majority of solutions tried by the banking system led to a heightened conflict of interest between small firms and banks during the recent recession due to the banks’ loan restructuring to avoid unnecessary risk.
Subjects: 
Financing
Bank Financing
Bank
Small Firms
Unlisted Firms
UK
JEL: 
G32
L25
Document Type: 
Article

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