Template-Type: ReDIF-Article 1.0
Author-Name: Reza Taheri Haftasiabi
Author-Name-First: Reza
Author-Name-Last: Taheri Haftasiabi
Author-Email: htaheri.reza7@gmail.com
Author-Workplace-Name: , Department of Economic Sciences, Faculty of Management and Economics, Urmia University, Urmia, Iran
Author-Name: Ameneh Naderi
Author-Name-First: Ameneh
Author-Name-Last: Naderi
Author-Email: naderi.ameneh@yahoo.com
Author-Workplace-Name: Urmia University, Department of Economic Sciences, Faculty of Management and Economics, Urmia University, Urmia, Iran.
Author-Name: Yousef Mohammadzadeh
Author-Name-First: Yousef
Author-Name-Last: Mohammadzadeh
Author-Email: musakandi@gmail.com
Author-Workplace-Name: Associate Professor, Urmia University, Department of Economic Sciences, Faculty of Management and Economics, Urmia University, Urmia, Iran
Title: The effects of Covid-19 on the lending performance of banks to SMEs: Markov Switching approach
Abstract: Small and medium enterprises (SME) in all societies play a very important role in improvement of economic indicators especially employment. Therefore, supporting these businesses for instance bank loan, can have many positive effects on the entire economy. However, the occurrence of shocks such as spreading of the Covid-19 virus causes high credit risk and some problems for these supports. So, this research has investigated the impact of the Covid-19 virus epidemic on the performance of bank loan to small and medium-sized companies in Iran. In this study, the data of the amount of lending by Iranian banks to SMEs for the period of December 2019 to December 2021 was collected on a monthly basis. Changes in data was affected by the growth of the number of people infected with the virus during this period and it has been analyzed by the Markov regime transfer method. The results showed that when the dependent variable is in its high regime, the growth of the number of people infected with the Covid-19 virus does not have a significant effect on the system. but in the low and medium regime, this variable has a negative and significant effect on the amount of bank loan to SMEs in Iran. In addition, the impact of some variables such as the growth of the exchange rate and the inflation index on the lending performance of banks was also considered during the pandemic.
Classification-JEL: JEL
Keywords: Bank lending; Covid-19; Markov Switching; SMEs
Journal: International Journal of Resistive Economics
Pages: 154-164
Volume: 13
Issue: 3
Year: 2025
Month: July
DOI: 10.22034/oajre.2024.488711.1097
File-URL: https://www.oajre.ir/article_212297_2510780cdd2288cd6c42e3596f52c47d.pdf
File-Format: Application/pdf
File-Function: Full text
File-URL: https://www.oajre.ir/article_212297.html
File-Format: text/html
File-Function: Abstract page
Handle: RePEc:trd:journl:212297