The SME-lender relationship network in Ireland
Edward Gaffney and
Additional contact information
Edward Gaffney: Central Bank of Ireland
Niall McGeever: Central Bank of Ireland
No 14/FS/22, Financial Stability Notes from Central Bank of Ireland
In this Note, we examine the relationship between non-bank lenders and Irish small and medium enterprises (SMEs). We review the relevance of non-bank lending to financial stability. We then describe the SME-lender relationship network in Ireland. We find that 36 per cent of SME company borrowers owe money to a non-bank lender, with 15 per cent borrowing exclusively from nonbanks and 21 per cent borrowing from both banks and non-banks. We also show that 71 per cent of borrowers have only one lender. Finally, we characterise the firms that rely on non-bank lenders for credit. We find that SMEs that borrow from non-banks are younger, less liquid, and have higher leverage than SMEs that borrow from banks.
New Economics Papers: this item is included in nep-cfn, nep-ent, nep-fdg, nep-mfd, nep-mon and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://www.centralbank.ie/docs/default-source/pub ... df?sfvrsn=bb049b1d_8 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cbi:fsnote:14/fs/22
Access Statistics for this paper
More papers in Financial Stability Notes from Central Bank of Ireland Contact information at EDIRC.
Bibliographic data for series maintained by Fiona Farrelly ().