Do macroprudential policies make SMEs more-or-less discouraged to apply for a bank loan?

Dimitris Anastasiou, Fotios Pasiouras, Anastasios Rizos and Artemis Stratopoulou
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Dimitris Anastasiou: Athens University of Economics and Business
Fotios Pasiouras: Montpellier Business School, France.
Artemis Stratopoulou: Athens University of Economics and Business

No 333, Working Papers from Bank of Greece

Abstract: This paper investigates the effect of macroprudential policies (MAPs) on discouraged small and medium-sized firms (bank borrowers). Employing confidential firm-level survey data for the Euro area countries and estimating Probit models, we find that several MAPs significantly reduce SMEs discouragement for applying for a bank loan. The marginal effects are, in most cases, highly significant, while the economic magnitude of implementing financial institutions-targeted MAPs is also significant. However, this finding is highly dependent on the degree of a firm’s credit quality. Our results are driven by the demand side; a more stable and better-capitalized banking system could make SMEs less discouraged from applying for a bank loan.

Keywords: Discouraged Borrowers; Credit Rationing; Macroprudential Policy; Eurozone SMEs (search for similar items in EconPapers)
JEL-codes: D81 E58 G10 G28 (search for similar items in EconPapers)
Pages: 45
Date: 2024-12
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