Evaluating a credit guarantee agency in a developing economy: A non-parametric approach
Banks are important sources of external credit but they are reluctant to lend to small and medium enterprises (SMEs) due to the high credit risk involved. Therefore, Credit Guarantee Corporation (Malaysia) Limited (CGC) was set up to assist SMEs to secure loans from financial institutions in Malaysi...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
2003
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8802/ |
| _version_ | 1848840971898322944 |
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| author | Ong, Hway Boon Habibullah, Muzafar Shah Radam, Alias Mohamed, Azali |
| author_facet | Ong, Hway Boon Habibullah, Muzafar Shah Radam, Alias Mohamed, Azali |
| author_sort | Ong, Hway Boon |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Banks are important sources of external credit but they are reluctant to lend to small and medium enterprises (SMEs) due to the high credit risk involved. Therefore, Credit Guarantee Corporation (Malaysia) Limited (CGC) was set up to assist SMEs to secure loans from financial institutions in Malaysia. Being the sole issuer of credit guarantees to SMEs, the performance of CGC directly reflects the availability of credit guarantees to SMEs. Hence, to ascertain the accessibility of credit guarantees, this study evaluates the efficiency of credit guarantee schemes provided by CGC From a non-parametric analysis, CGC is found to be operating at a relatively low level of overall technical efficiency. Therefore, CGC should consider reallocating its existing inputs as well as increase the amount of credit guarantees granted to SMEs in order to achieve a reasonable level of efficiency.
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| first_indexed | 2025-11-15T07:35:49Z |
| format | Article |
| id | upm-8802 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T07:35:49Z |
| publishDate | 2003 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-88022010-12-20T04:01:37Z http://psasir.upm.edu.my/id/eprint/8802/ Evaluating a credit guarantee agency in a developing economy: A non-parametric approach Ong, Hway Boon Habibullah, Muzafar Shah Radam, Alias Mohamed, Azali Banks are important sources of external credit but they are reluctant to lend to small and medium enterprises (SMEs) due to the high credit risk involved. Therefore, Credit Guarantee Corporation (Malaysia) Limited (CGC) was set up to assist SMEs to secure loans from financial institutions in Malaysia. Being the sole issuer of credit guarantees to SMEs, the performance of CGC directly reflects the availability of credit guarantees to SMEs. Hence, to ascertain the accessibility of credit guarantees, this study evaluates the efficiency of credit guarantee schemes provided by CGC From a non-parametric analysis, CGC is found to be operating at a relatively low level of overall technical efficiency. Therefore, CGC should consider reallocating its existing inputs as well as increase the amount of credit guarantees granted to SMEs in order to achieve a reasonable level of efficiency. 2003 Article PeerReviewed Ong, Hway Boon and Habibullah, Muzafar Shah and Radam, Alias and Mohamed, Azali (2003) Evaluating a credit guarantee agency in a developing economy: A non-parametric approach. International Journal of Social Economics, 30 (1-2). pp. 143-152. ISSN 0306-8293 http://dx.doi.org/10.1108/03068290310453646 Credit 10.1108/03068290310453646 English |
| spellingShingle | Credit Ong, Hway Boon Habibullah, Muzafar Shah Radam, Alias Mohamed, Azali Evaluating a credit guarantee agency in a developing economy: A non-parametric approach |
| title | Evaluating a credit guarantee agency in a developing economy: A non-parametric approach |
| title_full | Evaluating a credit guarantee agency in a developing economy: A non-parametric approach |
| title_fullStr | Evaluating a credit guarantee agency in a developing economy: A non-parametric approach |
| title_full_unstemmed | Evaluating a credit guarantee agency in a developing economy: A non-parametric approach |
| title_short | Evaluating a credit guarantee agency in a developing economy: A non-parametric approach |
| title_sort | evaluating a credit guarantee agency in a developing economy: a non-parametric approach |
| topic | Credit |
| url | http://psasir.upm.edu.my/id/eprint/8802/ http://psasir.upm.edu.my/id/eprint/8802/ http://psasir.upm.edu.my/id/eprint/8802/ |