Economics at your fingertips  

Finance Access of SMEs: What Role for the ECB?*

Ansgar Belke ()

No 201310, ROME Working Papers from ROME Network

Abstract: Small 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.

Keywords: ECB; financial crisis; bank-firm relationships; credit guarantee schemes; monetary policy transmission; small business finance yields (search for similar items in EconPapers)
JEL-codes: E23 E51 G21 O16 (search for similar items in EconPapers)
Date: 2013-08
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) First version, 2013 (application/pdf)

Related works:
Working Paper: Finance Access of SMEs: What Role for the ECB?* (2013) Downloads
Working Paper: Finance Access of SMEs: What Role for the ECB? (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in ROME Working Papers from ROME Network
Bibliographic data for series maintained by Albrecht F. Michler ().

Page updated 2019-08-17
Handle: RePEc:rmn:wpaper:201310