The purpose of this article is to explain the nature of the Year 2000 problem and the dangers it can create for different organizations. The authors discuss the types of risk that emanate from these system problems and propose a process by which a bank’s loan department may establish policies to assess and mitigate credit risk resulting from Year 2000 issues.
This study discusses the characteristics of firms, lenders, loans, and financial markets that can affect the availability, quantity, and price of credit to a small business. These are the characteristics on which researchers need data in order to test hypotheses about small business credit markets and, in particular, about the two central issues the author focuses on: To what extent do relationships with lenders affect the credit conditions faced by small businesses, and how will bank consolidation affect credit availability to smaller business borrowers.
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