Does Recent Regulation Improve (or not) the Spanish Mutual Guarantee System?
This paper aims to analyse the new regulation framework and its impact on the Spanish mutual guarantee system (MGS), especially on the cost of the guarantee. The main conclusions are that the reforms which were introduced do not directly affect the reduction of this guarantee cost. Nevertheless, in...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2017-01-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/3532 |
| _version_ | 1797921690891583488 |
|---|---|
| author | Clara Cardone-Riportella Marta GarcÃa-Mandaloniz |
| author_facet | Clara Cardone-Riportella Marta GarcÃa-Mandaloniz |
| author_sort | Clara Cardone-Riportella |
| collection | DOAJ |
| description |
This paper aims to analyse the new regulation framework and its impact on the Spanish mutual guarantee system (MGS), especially on the cost of the guarantee. The main conclusions are that the reforms which were introduced do not directly affect the reduction of this guarantee cost. Nevertheless, in our opinion, the regulation has strengthened the mutual guarantee system during the crisis as a result of the banks generating confidence to this financial intermediary, which helps to correct credit market failures. Currently, banks are more likely to recognize the role of the MGS and the declining risk involved thanks to the guarantee offered by the MGS that exhibits stronger solvency, liquidity and good governance policies.
Keywords: small business regulation, mutual guarantee system, guarantee cost.
JEL Classifications: D82, G21, G30
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| first_indexed | 2024-04-10T14:19:29Z |
| format | Article |
| id | doaj.art-4e3a90fd8b334b398ef16d4041165dcf |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:19:29Z |
| publishDate | 2017-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-4e3a90fd8b334b398ef16d4041165dcf2023-02-15T16:09:21ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-01-0171Does Recent Regulation Improve (or not) the Spanish Mutual Guarantee System?Clara Cardone-Riportella0Marta GarcÃa-Mandaloniz1Pablo de Olavide University.Carlos III University of Madrid This paper aims to analyse the new regulation framework and its impact on the Spanish mutual guarantee system (MGS), especially on the cost of the guarantee. The main conclusions are that the reforms which were introduced do not directly affect the reduction of this guarantee cost. Nevertheless, in our opinion, the regulation has strengthened the mutual guarantee system during the crisis as a result of the banks generating confidence to this financial intermediary, which helps to correct credit market failures. Currently, banks are more likely to recognize the role of the MGS and the declining risk involved thanks to the guarantee offered by the MGS that exhibits stronger solvency, liquidity and good governance policies. Keywords: small business regulation, mutual guarantee system, guarantee cost. JEL Classifications: D82, G21, G30 https://www.econjournals.com/index.php/ijefi/article/view/3532 |
| spellingShingle | Clara Cardone-Riportella Marta GarcÃa-Mandaloniz Does Recent Regulation Improve (or not) the Spanish Mutual Guarantee System? International Journal of Economics and Financial Issues |
| title | Does Recent Regulation Improve (or not) the Spanish Mutual Guarantee System? |
| title_full | Does Recent Regulation Improve (or not) the Spanish Mutual Guarantee System? |
| title_fullStr | Does Recent Regulation Improve (or not) the Spanish Mutual Guarantee System? |
| title_full_unstemmed | Does Recent Regulation Improve (or not) the Spanish Mutual Guarantee System? |
| title_short | Does Recent Regulation Improve (or not) the Spanish Mutual Guarantee System? |
| title_sort | does recent regulation improve or not the spanish mutual guarantee system |
| url | https://www.econjournals.com/index.php/ijefi/article/view/3532 |
| work_keys_str_mv | AT claracardoneriportella doesrecentregulationimproveornotthespanishmutualguaranteesystem AT martagarcaamandaloniz doesrecentregulationimproveornotthespanishmutualguaranteesystem |