Non-Bank Financing for Euro Area Companies During the Crisis

Annalisa Ferrando () and Emmanouil Mavrakis
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Annalisa Ferrando: European Central Bank
Emmanouil Mavrakis: European Central Bank

Chapter 1 in Access to Bank Credit and SME Financing, 2017, pp 3-28 from Palgrave Macmillan

Abstract: Abstract During the recent financial crisis the strong dependency of euro area non-financial corporations—and in particular SMEs—on bank financing has left them exposed to the weaknesses and deleveraging needs of the EU banking sector. This chapter examines the extent to which the available non-bank funding sources—from grants/subsidized loans, trade credit, other loans, and leasing to market-based finance—were accessible to companies when bank loans dried up, pointing to differences across firms and countries. Results signal that, during the crisis period, firms reporting they were constrained in their access to bank loans tended to switch more often to trade credit and leasing, but firms in those countries most affected by the crisis faced more difficulties carrying out this switch in financing.

Keywords: Capital structure; Financial diversification; Non-bank financing (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-319-41363-1_1

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DOI: 10.1007/978-3-319-41363-1_1

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