Bank lending and small and medium-sized enterprises' access to finance - effects of macroprudential policies

Ćehajić, Aida (author), Košak, Marko (author)

This paper examines the impact of macroprudential policies on small and medium-sized firms' access to bank finance. To this end, we use data from a firm-level survey covering European Union (EU) countries between 2009 and 2017, as well as a recently published database on the use of macroprudential policies in EU countries, the Macroprudential Policies Evaluation Database (MaPPED), which allows us to separately consider the tightening and loosening macroprudential policy measures. We develop several macroprudential indices based on the target of the macroprudential instruments. The results reveal a significant relationship between macroprudential indices and firms' access to finance. The indices are mainly associated with limited access to bank credit for SMEs, taking different firm- and country-level characteristics into account. While use of macroprudential measures could lead to higher capitalisation and make the financial sector more resilient and reduce its risk exposure, this could also mean restricted lending to firms, especially smaller firms with fewer financing options and considerable reliance on bank credit.

• Language: English
• Keywords: SMEs, finance, credit, macroprudential policy, bank lending, small and medium-sized enterprises, access to finance
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Version of Record
• Year: 2022
• Number of pages: 27 str.
• Numbering: Vol. 124, art. 102612
• PID: 20.500.12556/RUL-135641
• UDC: 336
• ISSN on article: 0261-5606
• DOI: 10.1016/j.jimonfin.2022.102612
• COBISS.SI-ID: 97904899
• Publication date in RUL: 23.03.2022

Record is a part of a journal

• Title: Journal of international money and finance
• Shortened title: J. int. money financ.
• Publisher: Elsevier
• ISSN: 0261-5606
• COBISS.SI-ID: 29270017

Licences

• License: CC BY-NC-ND 4.0, Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
• Link: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Description: The most restrictive Creative Commons license. This only allows people to download and share the work for no commercial gain and for no other purposes.

Projects

• Funder: EC - European Commission
• Funding programme: Erasmus Mundus
• Project number: 551984-EM-1-2014-1-ESERA MUNDUS-EMA21
• Name: Smart and Green technologies for innovative and sustainable societies in Western Balkans
• Acronym: Green-Tech-WB

• Funder: ARRS - Slovenian Research Agency
• Project number: P5-0161
• Name: Izzivi vlagateljev, podjetij, finančnih institucij in države v negotovem evropskem gospodarskem okolju