Mongolian SME sector is an important part of its private sector that effectively contributes to the outcome of Mongolian economy. Like SMEs in other countries, SMEs in Mongolia face challenge of accessing to finance and this is the most constraint for their continuous growth. While credit guarantee schemes, by filling this gap, became one of the most effective SME promoting tools for the governments of many developed and developing countries, Mongolian government has not been institutionalizing such schemes yet. This study investigates the feasibility of Mongolian government to establish a state-funded CGS in order to facilitate SMEs access to finance. This research based on questionnaire survey conducted from 316 SMEs in urban and rural areas of Mongolia in late 2011. SMEs need for financing, demand for guarantee services and their attitude toward establishing the CGS in Mongolia were investigated. Also, two officials from ¡§SME Fund¡¨ and ¡§SME Support Agency¡¨ were interviewed to analyze their attitude on feasibility of institutionalizing the CGS with the support of Mongolian government. The study showed that there is a high demand for additional financing and credit guarantees in SME sector. The findings suggested that the government urgently needs to institutionalize CGS to solve financial challenges of SMEs. As the most appropriate type of CGSs for Mongolian environment found was a ¡§Public CGS¡¨.

This dissertation studies the effects of credit availability on firm-level outcomes using a new matched employer-employee panel of Chilean firms that also includes firm-bank lending and tax data. In Chapter I, using a natural experiment and a differences in differences approach, I show that firms that experienced a positive credit supply shock during the 2008-09 recession in Chile, exhibit higher labor productivity four years after the shock, even after aggregate demand and credit supply have fully recovered. Chapter II presents evidence consistent with the hypothesis that at least part of the productivity improvement is due to an increased ability of firms with access to credit to adjust labor during the recession. In particular, I find that these firms exhibit larger worker flows and use credit to adjust employment by churning more workers. Chapter III studies a government partial credit guarantee scheme for bank loans to small and medium sized enterprises using a regression discontinuity design around the threshold for eligibility. I show that the program has a large positive causal effect on firms' total borrowing, and the effect is persistent. Moreover, firms that obtain bank loans through this scheme can borrow more from loans not insured by the guarantee, which means that the program has a positive effect on the firms's total borrowing capacity. Finally, the program also helps in the formation of new bank-firm lending relationships.

Small and Medium Business Credit Guarantee Fund (SMEG) is the sole non-profit credit guarantee providing organization in Taiwan. The mission of the fund is to help small and medium enterprises in need of capital obtain bank loans, and, hopefully, to promote the domestic economy as well as create the empolyment opportunities. In essence the fund facilitates the implementation of public policy. As the business environment is completely changed, the goals of handling fund were shifted from a financial perspective to a business perspective. The demand for the credit guarantee of the bank loan has substantially increased. In order to meet the growing demand, the effective risk management becomes an important issue. This study examines the overdue ratio and the effect of the risk management from the perspectives of enterprises, banks and the macroeconomics. Findings include the following:(a)some certain affiliated trades and some scales of loans are associated with high overdue ratio; (b) lowering the rate of guarantee can reduce the overdue ratio; (c) there is a significant difference between the characters of the bank and the overdue ratio of SMEG; (d) in macroeconomics, the overdue rate of the SMEG are highly related to the economic indicators such as economic growth rate, money supply, heavy discount rate and unemployment rate. The previous indicators can be the reference indicator of the risk management of SMEG.