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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2019-03-13  |  Accepted: 2019-08-08  |  Published: 2019-09-30

Title

Models of credit limit-setting for companies as means of encouraging competitiveness


Abstract

Monetary policy deals with a number of issues including improvement of the national business competitiveness, increasing the volume of internal credits, ensuring stability and sufficient reinvestments into the real sector of the economy. On the one hand, banks issue credits relying on the index of competitiveness. On the other hand, banks should encourage the growth of the organization’s competitiveness. These tasks are interconnected, but the latter one is hardly considered by researchers. Administration of companies’ competitiveness is a set of financial methods aimed at modifying the activity of regulatory institutions so that they can help companies achieve the required financial criteria. In order to solve the trilemma of competitiveness, monetary policy and credit limit-setting for a group of companies, robust management is necessary. Currently, banks have sufficient liquidity but prefer low credit exposure. Such an approach is conditioned by the recent financial shocks, dissatisfaction and disappointment with the existing methodology, which has not protected banks from risks. It leads to the necessity for banks to introduce credit limits for each company. The authors suggest a model of adjustment of competitiveness drivers for the real sector of the economy and ways to determine credit limits in order to support competitiveness.


Keywords

monetary policy, transmission mechanism, transmission investment channel, competitiveness, general equilibrium model, structured product


JEL classifications

O10 , O14 , O31 , O35


URI

http://jssidoi.org/jesi/article/391


DOI


Pages

615-625


Funding

The study was carried out with the financial support of PRUE. G. V. Plekhanov.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Gryzunova, Natalia Vladimirovna
Plekhanov Russian University of Economics, Moscow, Russian Federation http://www.rea.ru
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Pyatanova, Victoria Ivanovna
Plekhanov Russian University of Economics, Moscow, Russian Federation http://www.rea.ru
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Manuylenko, Viktoriya Valeryevna
North-Caucasus Federal University, Stavropol, Russian Federation http://eng.ncfu.ru
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Ordov, Konstantin Vasilievich
Plekhanov Russian University of Economics, Moscow, Russian Federation http://www.rea.ru
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Journal title

Entrepreneurship and Sustainability Issues

Volume

7


Number

1


Issue date

September 2019


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References