Purpose: The main subject of the article is a phenomenon that is increasingly common in countries of the global economy referred to as the so-called credit crunch. The study analyses the reasons that favour the escalation of risk of a credit crunch in the banking systems. The main objective of the article is to expose them as widely as possible, combining it with verification of the determinants of a credit crunch. Design approach: The empirical research conducted in this study focuses on the Polish banking system. For the first time the credit crunch was observed there in the second half of 2008. It was then that lending to households decreased by 25% and to enterprises by as much as 33%. In the Polish banking system, a drop in the volume of loans to enterprises has been observed for a long time, favouring the increase in risk of a credit crunch. Findings: The article evaluates the potential risk of a credit crunch in the Polish banking system pointing out their links resulting from the implementation of the new climate policy in the European Union as well as the COVID-19 pandemic. This is caused by the fact that during the COVID-19 crisis, credit rating of Polish enterprises decreased significantly, causing partial restrictions or even elimination of bank loan in industries threatened by the crisis. Research implication: The Polish economy is facing a significant challenge of meeting the EU criteria for limiting CO2 emissions, which will force domestic enterprises to invest considerably in environmental protection and will increase their demand for debt financing, including bank loans. Banks are preparing for green lending to the Polish economy which signifies a strong transition of loans to investments which meet the taxonomy criteria and are therefore subject to climate objectives. Practical and social implication: Industry risk will determine lending of Polish enterprises under the conditions of the European Green Deal. Green financing of investments of Polish enterprises is therefore becoming a significant potential cause of increasing risk of a credit crunch in the Polish banking sector. Originality/value: Presentation of the enterprise credit dilemmas in the conditions of financial instability of the global economy in the perspective of credit-crunch in Poland is a novel, original and contemporary subject. The diagnosis of the determinants of this threat has facilitated their positioning relatively to the risk of credit-crunch in the Polish banking sector. The results of this analysis underline the risks in this sector and the consequences of introducing European taxonomy of green investments as factors limiting credit actions and enterprise credits in banks.
The paper presents issues related to the use of trade credit by coal companies during the 2014-2016 downturn and the upturn of 2017–2018 in the coal industry. Coal companies are at both ends of trade credit, as providers and recipients. Research shows that they financed their activities by means of trade credit more widely than they granted it to coal buyers throughout the entire period. In the downturn, coal companies were keener to credit coal buyers than during the boom in the industry thereby suffering an increased risk of not recouping their receivables. This was reflected in the level of provisions for doubtful receivables. The decline in credit granted to buyers during the downturn is corroborated by a decline in the receivables cycle.
W artykule zaprezentowane zostały problemy korzystania przez spółki węglowe z kredytu kupieckiego w okresie dekoniunktury (2014–2016) i koniunktury (2017–2018) w branży węglowej. Spółki te są równocześnie dawcą i biorcą tego kredytu. Badania wykazały, że spółki węglowe w całym badanym okresie szerzej finansowały się kredytem kupieckim niż same tego kredytu udzielały odbiorcom węgla. W okresie dekoniunktury spółki te szerzej kredytowały odbiorców węgla zwiększając ryzyko nieodzyskania należności niż w okresie koniunktury w branży węglowej. Znalazło to wyraz w poziomie rezerw tworzonych na należności wątpliwe. Na ograniczenie zakresu kredytowania odbiorców w okresie koniunktury wskazuje spadek cykli należności.
Selection of the most valuable sale should be considered as one of the most important tasks of the Value Based Management. One of the methods useful on this field is the analysis of net present value (NPV) of sale. Present Value (PV) of sale depends on: a) price of product and amount of sale, b) credit-policy alternatives (conditions of payments). In this paper is undertaken an attempt to consider problem of assessment cost of capital, depending on conditions of payments - prepayment, cash on, trade credit (two-part or net terms).