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SMEs’ Access to Finance in the Euro Area: What Helps or Hampers?
Author:
Bahar Öztürknull

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and
Mr. Mico Mrkaic
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Series:
IMF Working Papers
Volume/Issue:
Volume 2014: Issue 078
Language:
English
Publication Date:
09 May 2014
DOI:
https://doi.org/10.5089/9781484379059.001
ISBN:
9781484379059
ISSN:
1018-5941
Pages:
30
Keywords:
WP; firm; firm size; access to finance; micro; small and medium sized enterprises; monetary policy; firms' access; micro firm; credit constraint; firm age; Bank credit; Credit; Financial statements; Credit default swap; Loans
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The monetary transmission mechanism in the euro area has been adversely affected by the recent crises. Using survey data on thousands of euro area firms, we study factors that affect the access to finance of SMEs. We find that changes in bank funding costs and borrower leverage matter for firms’ access to finance. Increases in bank funding costs and borrowers’ debt-to-asset ratios are significantly and negatively associated with firms’ access to finance. The use of subsidies significantly improve access to finance of SMEs. Finally, access to finance is found to be positively related to firm size and firm age.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2014: Issue 078