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Banking Crisis and SME Credit Risk Assessment

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Abstract

Small and medium-sized enterprises (SMEs) are a major concern for European policy-makers. The fixed costs entailed in accessing financial markets may be too high for SMEs, on the one hand; on the other, the increase in bank capital requirement has produced a credit crunch. When banks become more risk adverse (such as after the financial crisis) and/or the regulatory costs involved in an SME maintaining its loan status in the bank book are too high for it to support (such as after the most recent changes in banking capital rules), firms faced with credit constraint are more likely to exit the market. In this context, part of the solution for the funding gap SMEs face may be dependent on shadow banking and alternative funding options.

Keywords

Credit Risk Capital Requirement Bank Capital Shadow Banking Credit Risk Assessment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References on CCRs

  1. Artigas, C. 2004. A review of credit registers and their use for Basel II, Financial Stability Institute, Bank for International Settlements, September 2004.Google Scholar
  2. Gutierrez, M., and J. Hwang. 2010. Public credit registries as a tool for bank regulation and supervision, Policy Research Working Paper, World Bank, December 2010.Google Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

  1. 1.Springrowth SGRMilanItaly
  2. 2.ABIRomeItaly
  3. 3.EPIC SIMMilanItaly
  4. 4.Sapienza Università di RomaRomeItaly

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