The Impact of Basel II Regulations on Firms' Access To Credit: Empirical Evidence From Asian Countries
DOI:
https://doi.org/10.60087/jklst.vol4.n3.015Abstract
This study evaluates the impact of Basel II on corporate credit access based on credit ratings, using panel data of 1,295 firms across 17 Asian countries from 2004-2015. System GMM estimation results show that after Basel II implementation, firms with high credit risk (rated BB- and below) experienced a 19.94%-23.30% reduction in credit access compared to higher-rated firms. The study also finds that factors such as operating cash flow, financial leverage, and revenue size significantly impact firms' borrowing decisions in the Basel II context. Based on these findings, the author proposes policy implications including establishing a government credit guarantee system, adjusting risk weights appropriate to Asian market characteristics, reforming the credit rating system, and encouraging banks to develop internal risk assessment capabilities.
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