# **Table 8.3: Determinants of Lending to SMEs (2SLS)**

## **Dependent Variable: Share of SME Loans in Total Bank 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|**-1.92**<br>[4.19]***<br>(3.25)***|**-2.70**<br>[4.35]***<br>(3.54)***|**-2.69**<br>[4.34]***<br>(3.55)***|**-2.27**<br>[3.62]***<br>(2.91)***|**-1.61**<br>[2.69]***<br>(2.20)**|**-1.05**<br>[2.01]**<br>(1.50)|**-2.47**<br>[5.55]***<br>(4.41)***|**-2.56**<br>[5.70]***<br>(4.54)***|**-2.04**<br>[4.39]***<br>(3.43)***|**-1.86**<br>[3.92]***<br>(3.06)***|**-1.33**<br>[3.03]***<br>(2.32)**|
|GCC Dummy|**-5.64**|**-2.93**|**-5.04**|**-8.79**|**-10.08**|**-5.74**|**-4.67**|**-5.69**|**-9.79**|**-8.67**|**-5.80**|
||[3.01]***|[1.29]|[2.01]**|[3.09]***|[3.71]***|[2.92]***|[2.35]**|[2.76]***|[3.83]***|[3.46]***|[3.22]***|
||(2.21)**|(0.97)|(1.49)|(2.34)**|(2.75)***|(2.15)**|(1.75)*|(2.05)**|(2.91)***|(2.55)**|(2.39)**|
|State Ownership Dummy|**1.11**|**0.09**|**1.27**|**0.12**|**0.91**|**0.74**|**1.24**|**1.94**|**1.16**|**1.46**|**0.99**|
||[0.62]|[0.05]|[0.64]|[0.06]|[0.49]|[0.37]|[0.71]|[1.05]|[0.69]|[0.82]|[0.56]|
||(0.45)|(0.03)|(0.46)|(0.05)|(0.35)|(0.26)|(0.51)|(0.75)|(0.50)|(0.59)|(0.40)|
|Log Number of Branches||**1.91**|**1.52**|**1.98**|**1.03**|**0.46**||||||
|||[2.18]**|[1.70]*|[2.32]**|[1.33]|[0.66]||||||
|||(1.70)*|(1.31)|(1.83)*|(1.05)|(0.48)||||||
|Separate Unit for SME Clients Dummy|||||||**6.86**|**5.65**|**6.10**|**5.06**|**3.13**|
||||||||[2.96]***|[2.47]**|[2.68]***|[2.20]**|[1.19]|
||||||||(2.23)**|(1.85)*|(2.03)**|(1.65)|(0.86)|
|Maximum Coverage Registry or Bureau||**-0.03**|**-0.04**|**0.15**|**0.01**|**-0.04**|**-0.04**|**-0.05**|**0.13**|**-0.02**|**-0.01**|
|||[0.44]|[0.71]|[2.53]**|[0.11]|[0.83]|[0.71]|[0.88]|[2.03]**|[0.34]|[0.14]|
|||(0.37)|(0.60)|(2.41)**|(0.08)|(0.70)|(0.59)|(0.73)|(1.97)*|(0.27)|(0.12)|
|Legal Rights Index|||**1.94**|||||**1.55**||||
||||[1.97]*|||||[1.56]||||
||||(1.43)|||||(1.14)||||
|Time to Register Property||||**-0.14**|||||**-0.12**|||
|||||[3.54]***|||||[3.28]***|||
|||||(2.69)***|||||(2.48)**|||
|Time to Enforce a Contract|||||**-0.03**|||||**-0.02**||
||||||[4.60]***|||||[3.04]***||
||||||(3.45)***|||||(2.34)**||
|Time to Close a Business||||||**-1.64**|||||**-1.00**|
|||||||[2.66]***|||||[1.64]|
|||||||(1.95)*|||||(1.20)|
|**Partial Credit Guarantee % of GDP**|**10.29**|**10.03**|**9.71**|**7.93**|**7.53**|**11.65**|**11.89**|**11.66**|**9.97**|**10.15**|**13.09**|
||[3.27]***|[3.15]***|[3.08]***|[2.35]**|[2.28]**|[3.39]***|[3.60]***|[3.64]***|[2.90]***|[3.09]***|[3.81]***|
||<br>(2.41)**|<br>(2.31)**|<br>(2.26)**|<br>(1.73)*|<br>(1.67)*|<br>(2.46)**|<br>(2.66)***|<br>(2.69)***|<br>(2.15)**|<br>(2.28)**|<br>(2.78)***|
|Observations|177|177|177|177|177|151|162|162|162|162|136|
|Number of Countries|15|15|15|15|15|13|15|15|15|15|13|
|Number of Banks|96|96|96|96|96|82|88|88|88|88|74|
|Kleibergen-Paap F statistic|5779|6924|8522|7827|7878|13195|6186|7759|6870|6524|11728|
|Hansen J statistic|1.31|0.07|2.3|0.04|0.12|3.31|0.14|0.72|0|0.01|2.61|
|l f ii|25||1||||1|4||4|11|
|P vaue o Hansen J statstc|0.|0.8|0.3|0.83|0.73|0.07|0.7|0.|0.97|0.9|0.|