Author, A., & Author, B. (2023). Title. Journal of International Studies, 16(1), 9-25. doi:10.14254/2071-8330.2023/16-1/1
Title Journal of International Studies Scientific Papers Centre of Sociological Research
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Abstract. A single paragraph of about 200 words maximum. For research articles, abstracts should give a pertinent overview of the work. We strongly encourage authors to use the following style of structured abstracts, but without headings: 1) Background: Place the question addressed in a broad context and highlight the purpose of the study; 2) Methods: Describe briefly the main methods or treatments applied; 3) Results: Summarize the article's main findings; and 4) Conclusions: Indicate the main conclusions or interpretations. The abstract should be an objective representation of the article, it must not contain results which are not presented and substantiated in the main text and should not exaggerate the main conclusions.. Keywords: keyword 1, keyword 2, keyword 3 (List three to ten pertinent keywords specific to the article, yet reasonably common within the subject discipline.) bank financing, small and medium enterprises, bank ownership, relationship lending, Bangladesh. JEL Classification: example G21, L26, O16	Received: December, 2022 1st Revision: February, 2023 Accepted: May, 2023 DOI: 10.14254/2071- 8330.2023/16-1/1

1. Introduction

The introduction should briefly place the study in a broad context and highlight why it is important. It should define the purpose of the work and its significance. The current state of the research field should be reviewed carefully and key publications cited. Please highlight controversial and diverging hypotheses when necessary. Finally, briefly mention the main aim of the work and highlight the principal conclusions. As far as possible, please keep the introduction comprehensible to scientists outside your particular field of research.

EXAMPLE: Contribution of Small and Medium Enterprises (SMEs) to the development of any economy is undeniable and, as a result, policy makers and researchers are actively involved in resolution of the issues faced by SMEs while ensuring their survival (Virglerova et al., 2016; Adamowicz & Machla, 2016; Dubravska et al., 2015; Spoz, 2014). Analysis of 76 developed and developing countries by Ayyagari et al. (2007) showed that SMEs are solely responsible for the creation of about 60 percent of employment in manufacturing sector. Moreover, SMEs also help improve socioeconomic conditions of a country by reducing import and producing products locally by fulfilling the needs of local community (Straka et al., 2015; Setyawan et al., 2015).

2. Literature Review

2.1. Banks ownership and relationship lending

Relationship lending, the most common techniques for lending to small firms, is based on the "soft" information which is accessible by keeping a close relationship with the client. Alternatively, there exist transaction-based lending techniques, those are mainly based on the "hard" information about the businesses. For example, financial statements based lending, asset based lending and credit scoring (Petersen & Rajan, 2002). Researches dealing with the soft information generation and bank lending efficiency argue that the soft information collection and careful examination of the information can increase the lending efficiency of the bank that can positively affect the small business access to credit (D’Aurizio et al., 2015). On the other hand, empirical results show that commercial banks can improve the credit rating model by including the relationship lending qualitative (soft) information of the borrower in the rating process, and that focus only on the hard financial information can be misleading (Dolezal et al., 2015).

3. methodology

Materials and Methods should be described with sufficient details to allow others to replicate and build on published results. Please note that publication of your manuscript implicates that you must make all materials, data, computer code, and protocols associated with the publication available to readers. Please disclose at the submission stage any restrictions on the availability of materials or information. New methods and protocols should be described in detail while well-established methods can be briefly described and appropriately cited.

EXAMPLE: Research manuscripts reporting large datasets that are deposited in a publicly available database should specify where the data have been deposited and provide the relevant accession numbers. If the accession numbers have not yet been obtained at the time of submission, please state that they will be provided during review. They must be provided prior to publication.

Table 1

All banks N = 44; Public bank N= 4; Private bank N= 35; Foreign bank N= 5.

Bank Ownership Type
All Banks	Public bank	Private bank	Foreign bank
Variable/Bank characteristics	Mean	Mean	Mean	Mean
Bank Age (years)	22(12)	43(.50)	19(11)	23(14)
No. Of Total Branches	180(270)	944(290)	114(75)	17(10)
No. Of Total Employees	3175(4181)	13489(7191)	2324(1681)	703(810)
Total Assets (BDT Million)*	182460(168508)	581748(278514)	149298(78973)	88523(84559)
Total Deposits (BDT Million)*	144612(138860)	475033(235255)	118043(62719)	60947(59916)
Total Advances (BDT Million)*	103310(75434)	252402(98562)	94711(51952)	42507(45200)
SME Advances (BDT Million)*	15717(15864)	21401(15646)	16736(16171)	4236(5503)
SME Advance To Total Advance Ratio	15(10)	7(4)	17(11)	8(5)

Standard deviations are in parenthesizes.

Source: Bank’s annual statements 2014; Authors’ calculations

*1 USD= 77.87 Bangladeshi Taka (BDT) as of 31 December 2014.

4. Empirical results and discussion

This section may be divided by subheadings. It should provide a concise and precise description of the experimental results, their interpretation as well as the experimental conclusions that can be drawn.

EXAMPLE:

Table 2

Test of hypotheses

Bank Ownership Type
Chi-Square Value	P-Value
H1: Relationship banking and lending interest rate	8.203	0.084*
H2: Borrowers without collateral are more likely to be credit rationed	8.175	0.085*
H3: Exclusive bank-borrower relationship facilitates loan terms (duration and covenants)	10.171	0.038**
H4: Relationship lending helps to minimize credit risk	17.791	0.001***

Source: Authors’ results. * indicates significance level at 0.10 level, ** indicates significance level at 0.05 level, *** indicates significance level at 0.01 level.

Table 2 presents the results of the quantitative evaluation of our scientific hypotheses that was made in order to understand how relationship banking and the lending information are evaluated by private, public and foreign banks to process SME loans application. Furthermore, whether the soft information from lending relationship helps the bank to set the loan conditions and also to evaluate the credit risk of the loan. At first, we see that how private and other (public and foreign) banks treat the relationship banking soft information for setting the loan spread for SME borrowers

5. Conclusion

This section is not mandatory, but can be added to the manuscript if the discussion is unusually long or complex.

EXAMPLE: In this paper we aimed to explore how the type of bank ownership - local private banks, government-owned banks (public banks) and foreign banks - can affect the relationship lending efficiency of banks, since, different banks have different organizational structure and lending techniques. We hypothesized that private banks will be more efficient in relationship banking than government-owned and foreign banks as a result of their expertise in soft information processing. As a consequence, private banks will consider the soft private information while setting up interest rates, loan maturity, collateral and credit risk of the SME borrower. We have used a new data set from Bangladesh which was collected from 44 commercial banks.

Acknowledgement

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EXAMPLE: The authors are thankful to the Internal Grant Agency of University No.: “Title” for financial support to carry out this research.

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