The above discussion does not discourage the establishment of small- and medium-sized banks even though total bank asset is not a significant factor. In fact, more small- and medium-sized banks can lead to greater SME lending by generating more intensified competition in local markets. Also, small-sized banks with less hierarchical levels will lend more to SMEs. On the other hand, to ensure that a small- and medium-sized bank can grow in a sustainable fashion, it needs to be granted the authority to control its funds, and incentive schemes for loan managers need to be worked out carefully. In this process, the
government can still play an active role, not through directly interfering in loan decisions but through fostering a good institutional environment such as stronger law enforcement.
The above discussion does not discourage the establishment of small- and medium-sized banks even though total bank asset is not a significant factor. In fact, more small- and medium-sized banks can lead to greater SME lending by generating more intensified competition in local markets. Also, small-sized banks with less hierarchical levels will lend more to SMEs. On the other hand, to ensure that a small- and medium-sized bank can grow in a sustainable fashion, it needs to be granted the authority to control its funds, and incentive schemes for loan managers need to be worked out carefully. In this process, thegovernment can still play an active role, not through directly interfering in loan decisions but through fostering a good institutional environment such as stronger law enforcement.
การแปล กรุณารอสักครู่..