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

Author

Listed:
  • Bahar Öztürk
  • Mr. Mico Mrkaic

Abstract

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.

Suggested Citation

  • Bahar Öztürk & Mr. Mico Mrkaic, 2014. "SMEs’ Access to Finance in the Euro Area: What Helps or Hampers?," IMF Working Papers 2014/078, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2014/078
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    References listed on IDEAS

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