SMES’ LOANS APPROVAL CONSIDERATION AFTER PANDEMICS: CASE OF THE THAI GOVERNMENT SAVINGS BANK

Abstract

The study compared the perspectives of 67 bank business relations and credit analysis employees and 200 small and medium-sized enterprise (SME) loan customers during the period following the COVID-19 outbreak. To test the differences hypothesis, the study employed a 5-level Likert scale questionnaire, data analysis with descriptive statistics, and an independent sample t-test. The study results refuted the hypothesis that the two sample groups hold different opinions regarding loan approval criteria and analysis methods. In the event of a crisis, it was possible that the macroeconomic effects and hazards associated with providing loans would lead to an imbalance in the demand and supply of bank and financial institution loans. These resulted from alterations to the

balance sheets, decreased income, and reduced profits of the SME loan applicants. It led to credit management in the form of reduced loan allocation and credit rationing by the bank, ultimately impeding SME access to credit.

Regarding the possibility that there is no difference in opinion, according to the study, SME entrepreneurs as loan applicants emphasized the significance of aligning various operational processes, loan approval considerations, and loan analysis methods in order to obtain approval based on the desired loan amount, objectives, and disbursement period. The loan applicants have prepared and improved their credit readiness, are aware of the benefits of policies and support from various supporting organizations to create opportunities for capital procurement, and know that bank and financial institution decision-making is contingent on the risk control conditions of the bank or financial institution itself. In the meantime, bank employees adhere to bank policies and government regulations. The Bank of Thailand assisted following the measures outlined in the Emergency Decree on Financial Assistance for Small and Medium-Sized Enterprises, which must be rigorously implemented to ensure that the bank bears the risk associated with loan decisions.