The Influence of Specific Criteria of Emerging Markets on SME Financing in MENA Markets

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Author(s): Wafa Snoussi (High Institute of Management, Tunisia)and Azza Béjaoui (Faculty of Economic Sciences and Management Sousse, Tunisia)
Copyright: 2018
Pages: 23
Source title: Financial Entrepreneurship for Economic Growth in Emerging Nations
Source Author(s)/Editor(s): Atsede Woldie (University of South Wales, UK)and Brychan Thomas (University of South Wales, UK)
DOI: 10.4018/978-1-5225-2700-8.ch003

Keywords: Accounting and Finance / Business & Management / Business Science Reference / Entrepreneurship & Innovation

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Abstract

In this chapter we are interested in the impact of specific microstructure criteria of emerging markets in the financing of SMEs especially in risk measures. The main risk measurement tool is the Value-at-Risk (VaR) which is recommanded by the Basel II Committee on Banking Supervision (BCBS). The recommendations of the Basel II committee give financial institutions the freedom to develop their own Value-at-Risk model of risk measurement in order to calculate their capital requirements for financial risk. The Basel II committee recommends the use of back testing in order to validate the choice of the best method. In order to finance SMEs enterprises in emerging market we must consider the specific microstructure criteria of these emerging markets such as low liquidity, very pronounced asymmetric information, over predictability and high volatility how affects the risk estimation.

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The Influence of Specific Criteria of Emerging Markets on SME Financing in MENA Markets

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