2020 Fiscal Year Annual Research Report
Optimal credit guarantee fee rate for the small and medium-sized enterprises in Japan
| Project/Area Number |
19K13742
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| Research Institution | Tokai University |
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Principal Investigator |
タギザーデヘサーリ ファルハード 東海大学, Institute of Social Sciences, lecturer (00770041)
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| Project Period (FY) |
2019-04-01 – 2021-03-31
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| Keywords | Credit Guarantee Scheme / Credit Guarantee / Small business / SMEs / Microfinance / Financial Innovation / Financial Institutions / Green Finance |
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| Outline of Annual Research Achievements |
I developed a theoretical model for calculating the optimal credit guarantee fee. In the empirical part, this study examined whether selected macroeconomic variables and the financial health of Small and Medium-Sized Enterprises (SMEs) have a statistically significant impact on the default risk ratio of loans to SMEs; the main determinant of the fee. Empirical results support my hypothesis that the credit guarantee fee should be different for sound and risky SMEs to avoid moral hazard and according to the macroeconomic state. (Economic Modelling, DOI: https://doi.org/10.1016/j.econmod.2020.03.003). In another study, I expanded the credit guarantee scheme to the green sector and developed a new financial innovation called: green credit guarantee scheme (GCGS) that can reduce the risk of green finance. (Energies, DOI: https://doi.org/10.3390/en13040788). I want apply the models that developed in this research project to the green and renewable energy sector and use the data from the real work to test the models empirically in the near future.
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