Credit Financing of Micro-Enterprises and Farmers by Commercial and Cooperative Banks in Poland: Does the Use of Investment and Working Capital Loans Change During the COVID-19 Pandemic?..


Purpose – The paper aims to assess the credit financing of microenterprises and farmers by commercial and cooperative banks in pre-Covid-19 and Covid-19 subperiods.

Research method – In the study, we apply the Kruskal-Wallis test and Wilcoxon ranksum pairwise comparison test with the adjustment based on the Benjamini and Hochberg method to check whether there are significant differences in mean values of banking loan categories for microenterprises and farmers among commercial and cooperative banks in the pre-Covid-19 and Covid-19 periods.

Results – We observe that microenterprises mostly use commercial banks, while farmers depend majorly on cooperative banks. Additionally, farmers use investment loans more often than microenterprises. We show a significant decline in loan sales and enquiries among microenterprises and farmers during Covid-19. Moreover, we observe the median values of all analysed categories show significant differences between commercial and
cooperative banks. It concerns both investment and working capital loans.

Originality / value / implications / recommendations – Our contribution is that we analyse this issue from the perspective of leading suppliers offering banking loans, i.e., commercial and cooperative banks. We detect whether analysed banking loan categories differ significantly in the group of microenterprises and farmers across commercial and cooperative banks in Poland in the above-mentioned periods. To our knowledge, there are no similar studies. The results of our study might be helpful for banking institutions and policymakers
in the context of a potential future pandemic or crisis situation.


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