Assessing the impact of the EIB’s intermediated lending to SMEs during funding shocks

Raschid Amamou (), Áron Gereben and Marcin Wolski ()
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Raschid Amamou: European Central Bank
Marcin Wolski: European Investment Bank

Small Business Economics, 2023, vol. 60, issue 3, No 7, 975-1007

Abstract: Abstract We look at the impact of intermediated funding provided by the European Investment Bank (EIB) on the performance of small- and medium-sized enterprises (SMEs) in the European Union between 2008 and 2014 — the Great Financial Crisis (GFC) and its aftermath. We use a combination of propensity score matching and difference-in-differences to evaluate the impact of EIB-supported credit on corporate performance using firm-level data. We find that access to EIB-supported funding had a positive effect on employment and investment in beneficiary firms. This positive effect was stronger in those countries where banks have traditionally relied more strongly on non-core liabilities, such as interbank funding. All in all, our results indicate that EIB-supported funding made a significant and positive difference to the economic and financial performance of the beneficiary SMEs in the aftermath of the Great Financial Crisis.

Keywords: SMEs; Access to finance; International financial institutions; Funding shocks (search for similar items in EconPapers)
JEL-codes: G01 H81 L25 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11187-022-00620-x

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