# **Table 8.4: Determinants of Lending to SMEs (2SLS)**

## **Dependent Variable: Share of SME Investment Loans in Total SME Loans**

Regressions are estimated via 2SLS at bank level for the year 2007 to 2009. Robust t statistics in brackets and (bank level) clustered t statistics in parenthesis.* significant at 10%; ** significant at 5%; *** significant at 1%

||**1**|**2**|**3**|**4**|**5**|**6**|**7**|**8**|**9**|**10**|**11**|
|---|---|---|---|---|---|---|---|---|---|---|---|
|Log Total loans|**-2.00**<br>[2.01]**|**-4.20**<br>[2.68]***|**-4.37**<br>[2.76]***|**-3.95**<br>[2.50]**|**-3.74**<br>[2.40]**|**-0.23**<br>[0.11]|**-2.45**<br>[2.21]**|**-2.37**<br>[2.06]**|**-2.16**<br>[1.92]*|**-2.07**<br>[1.83]*|**-0.82**<br>[0.64]|
||(1.47)|(1.94)*|(1.99)**|(1.82)*|(1.74)*|(0.08)|(1.63)|(1.52)|(1.42)|(1.36)|(0.46)|
|GCC Dummy|**-7.34**|**-5.03**|**-2.11**|**-7.46**|**-8.16**|**-12.88**|**-12.04**|**-10.81**|**-15.63**|**-14.66**|**-12.77**|
||[1.77]*|[0.81]|[0.32]|[1.00]|[1.08]|[1.92]*|[2.41]**|[2.22]**|[2.48]**|[2.32]**|[2.57]**|
||(1.26)|(0.58)|(0.23)|(0.72)|(0.77)|(1.36)|(1.72)*|(1.58)|(1.78)*|(1.65)|(1.84)*|
|State Ownership Dummy|**12.12**|**10.91**|**9.64**|**10.71**|**10.86**|**13.97**|**13.39**|**12.82**|**12.93**|**13.11**|**14.15**|
||[2.26]**|[2.14]**|[1.93]*|[2.13]**|[2.09]**|[2.55]**|[2.47]**|[2.36]**|[2.44]**|[2.39]**|[2.52]**|
||(1.61)|(1.53)|(1.38)|(1.52)|(1.49)|(1.81)*|(1.76)*|(1.68)*|(1.74)*|(1.69)*|(1.79)*|
|Log Number of Branches||**4.85**|**5.65**|**4.67**|**4.53**|**-0.29**||||||
|||[2.21]**|[2.46]**|[2.17]**|[2.12]**|[0.13]||||||
|||(1.58)|(1.75)*|(1.55)|(1.51)|(0.09)||||||
|Separate Unit for SME Clients Dummy|||||||**6.66**|**7.87**|**6.53**|**5.76**|**4.01**|
||||||||[1.29]|[1.40]|[1.27]|[1.08]|[0.71]|
||||||||(0.93)|(1.01)|(0.91)|(0.78)|(0.50)|
|Maximum Coverage Registry or Bureau||**0.23**|**0.26**|**0.30**|**0.24**|**0.27**|**0.30**|**0.33**|**0.41**|**0.31**|**0.29**|
|||[1.23]|[1.40]|[1.28]|[1.30]|[1.53]|[1.74]*|[1.88]*|[1.87]*|[1.77]*|[1.73]*|
|||(0.89)|(1.01)|(0.93)|(0.94)|(1.11)|(1.25)|(1.36)|(1.35)|(1.28)|(1.25)|
|Legal Rights Index|||**-2.18**|||||**-1.66**||||
||||[1.32]|||||[0.93]||||
||||(0.94)|||||(0.66)||||
|Time to Register Property||||**-0.06**|||||**-0.09**|||
|||||[0.60]<br>|||||[0.97]<br>|||
|||||(0.43)|||||(0.70)|||
|Time to Enforce a Contract|||||**-0.01**|||||**-0.01**||
||||||[0.71]|||||[0.70]||
||||||(0.51)|||||(0.50)||
|Time to Close a Business||||||**-2.01**<br>|||||**-1.82**<br>|
|||||||[1.12]|||||[1.02]|
|||||||(0.79)|||||(0.72)|
|**Partial Credit Guarantee % of GDP**|**19.46**|**17.24**|**18.17**|**16.31**|**15.85**|**19.68**|**15.80**|**16.42**|**14.33**|**14.53**|**18.74**|
||[2.27]**|[1.97]*|[2.09]**|[1.84]*|[1.74]*|[2.34]**|[1.69]*|[1.76]*|[1.53]|[1.53]|[2.08]**|
||(1.61)|(1.39)|(1.48)|(1.30)|(1.23)|(1.65)|(1.19)|(1.24)|(1.08)|(1.08)|(1.47)|
|Observations|164|164|164|164|164|145|162|162|162|162|143|
|Number of Countries|15|15|15|15|15|13|15|15|15|15|13|
|Number of Banks|87|87|87|87|87|77|86|86|86|86|76|
|Kleibergen-Paap F statistic|5970|7520|9116|8327|7617|13006|7565|9062|8184|7473|13011|
|Hansen J statistic|0.16|0.29|0|0.4|0.46|2.88|0.01|0.35|0.01|0|3.13|
|P value of Hansen J statistic|0.69|0.59|0.98|0.53|0.5|0.09|0.93|0.55|0.93|0.95|0.08|