Finance Access of SMEs: What Role for the ECB?
AbstractSmall and medium size enterprises (SMEs) of southern euro-area economies (e.g. Italy, Spain) pay significantly higher borrowing rates than their peers of the core (e.g. Germany, France) and this divergence is widening. It is argued that severe market failures prevent SMEs in southern euro area countries from access to key inputs, in particular access to finance. This paper makes an assessment of feasible options to improve finance access of SMEs, available to EU institutions as well as to the ECB in the context of its price stability mandate. Because of non-negligible moral hazard issues, the paper is sceptical about a stronger involvement of the ECB in the (indirect) financing of SMEs through the securitisation of banks`loans or their use as collateral for monetary policy operations. The paper concludes with some proposals for extending finance access of SMEs, including through mutual guarantee institutions along the lines recently pursued by the European Investment Bank.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by ROME Network in its series ROME Working Papers with number 201310.
Length: 20 pages
Date of creation: Aug 2013
Date of revision:
Contact details of provider:
Web page: http://www.rome-net.org
ECB; financial crisis; bank-firm relationships; credit guarantee schemes; monetary policy transmission; small business finance yields;
Other versions of this item:
- Ansgar Belke, 2013. "Finance Access of SMEs: What Role for the ECB?," Ruhr Economic Papers 0430, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Ansgar Belke & Florian Verheyen, 2013. "Finance Access of SMEs: What Role for the ECB?," ROME Working Papers 201311, ROME Network.
- E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ansgar Belke & Rainer Fehn & Neil Foster, 2001.
"Venture Capital Investment and Labor Market Performance: A Panel Data Analysis,"
Diskussionspapiere aus dem Institut fÃ¼r Volkswirtschaftslehre der UniversitÃ¤t Hohenheim
197/2001, Department of Economics, University of Hohenheim, Germany.
- Ansgar Belke & Rainer Fehn & Neil Foster, 2001. "Venture Capital Investment and Labor Market Performance: A Panel Data Analysis," Vienna Economics Papers 0112, University of Vienna, Department of Economics.
- Ansgar Belke & Rainer Fehn & Neil Foster, 2002. "Venture Capital Investment and Labor Market Performance: A Panel Data Analysis," CESifo Working Paper Series 652, CESifo Group Munich.
- Belke, Ansgar & Fehn, Rainer & Foster, Neil, 2001. "Venture capital investment and labor market performance: a panel data analysis," Wirtschaftswissenschaftliche BeitrÃ¤ge 50, Julius-Maximilians-Universität Würzburg, Lehrstuhl für Volkswirtschaftslehre, insbes. Wirtschaftsordnung und Sozialpolitik.
- Francesca Bartoli & Giovanni Ferri & Pierluigi Murro & Zeno Rotondi, 2011.
"Bank-firm relations and the role of Mutual Guarantee Institutions during the crisis,"
0034, Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari, revised Jan 2011.
- Bartoli, Francesca & Ferri, Giovanni & Murro, Pierluigi & Rotondi, Zeno, 2013. "Bank–firm relations and the role of Mutual Guarantee Institutions at the peak of the crisis," Journal of Financial Stability, Elsevier, vol. 9(1), pages 90-104.
- Columba, F. & Gambacorta, L. & Mistrulli, P.E., 2009.
"Mutual Guarantee Institutions and Small Business Finance,"
2009-32 S, Tilburg University, Center for Economic Research.
- Columba, Francesco & Gambacorta, Leonardo & Mistrulli, Paolo Emilio, 2010. "Mutual guarantee institutions and small business finance," Journal of Financial Stability, Elsevier, vol. 6(1), pages 45-54, April.
- Francesco Columba & Leonardo Gambacorta & Paolo Emilio Mistrulli, 2009. "Mutual guarantee institutions and small business finance," BIS Working Papers 290, Bank for International Settlements.
- Francesco Columba & Leonardo Gambacorta & Paolo Emilio Mistrulli, 2009. "Mutual guarantee institutions and small business finance," Temi di discussione (Economic working papers) 735, Bank of Italy, Economic Research and International Relations Area.
- Schneider, Cedric & Veugelers, Reinhilde, 2008. "On Young Innovative Companies: Why they matter and how (not) to policy support them," Working Papers 04-2008, Copenhagen Business School, Department of Economics.
- Colombo, Massimo G. & Delmastro, Marco, 2002. "How effective are technology incubators?: Evidence from Italy," Research Policy, Elsevier, vol. 31(7), pages 1103-1122, September.
- Berger, Allen N. & Udell, Gregory F., 2006. "A more complete conceptual framework for SME finance," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 2945-2966, November.
- Petersen, Mitchell A & Rajan, Raghuram G, 1994. " The Benefits of Lending Relationships: Evidence from Small Business Data," Journal of Finance, American Finance Association, vol. 49(1), pages 3-37, March.
- Edward I. Altman & Gabriele Sabato, 2007. "Modelling Credit Risk for SMEs: Evidence from the U.S. Market," Abacus, Accounting Foundation, University of Sydney, vol. 43(3), pages 332-357.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Albrecht F. Michler).
If references are entirely missing, you can add them using this form.