The Behavior of Credit Granting and Institu-tionalization of Commercial Banks in Poland

Abstract

The Polish commercial banks in the process of transition depending on the capital and institutionalization from foreign countries show in contrast with credit granting behavior between SMEs and big enterprises of which banks easily overcome the information asymmetry.
Having risk avoiding incentives, banks limit lending to SMEs because of their trustless information and holdup problem due to still insufficient institutionalization and immature system, then the granting credit of banks is inactive although the demand of investment capital increases.