Mutual guarantee institutions aids credit access

bank-for-international-settlements

Small firms can improve their borrowing capacity by joining mutual guarantee institutions, new research from the Bank for International Settlements reveals.

In mutual guarantee institutions, members contribute to a guarantee fund which is then used as collateral to back loans granted to the members themselves.

The research finds that small firms affiliated with such institutions pay less for credit compared with similar firms which are not members. The analysis shows that small firms, especially

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