Basel III Implementation and SME Financing: Evidence for Emerging Markets and Developing Economies

Fisera, Boris; Horváth, Roman; Melecký, Martin

doi:10.1596/1813-9450-9069

Cited by 4 publications

(3 citation statements)

References 34 publications

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“…Ayyagari, Beck, and Peria (2018) show that smaller firms as well as smaller banks experience lower credit growth as a reaction to macroprudential policies. Fišera, Horvath, and Meleckỳ (2019) obtain similar results when assessing the impact of the implementation of Basel III on SME lending. Degryse, Karapetyan, and Karmakar (2021) find that banks facing stricter capital requirements require loans to be collateralized more often.…”

Section: Literature Reviewsupporting

confidence: 58%

Basel Iii and SME Bank Finance in Germany

Marek¹,

Stein²

2022

SSRN Journal

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Section: Literature Reviewsupporting

confidence: 58%

Basel Iii and SME Bank Finance in Germany

Marek¹,

Stein²

2022

SSRN Journal

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“…This result suggests that the adverse effects of past financial constraints on firms' net-worth are exacerbated for small and opaque businesses, making them more likely to be locked in a credit restriction state and increasing their gap in accessing bank finance. In line with Ayyagari et al (2018) and Fisera et al (2019), the higher persistence in credit rationing of small businesses may also be related to the negative impact on access to finance of stricter bank capital requirements, which is particularly pronounced for small firms that have already experienced credit restrictions.…”

Section: Rationingmentioning

confidence: 88%

Heterogeneity and state dependence in firms’ access to bank credit

Aristei

Angori

2021

Small Bus Econ

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This paper investigates firms’ access to bank credit in eleven euro area countries over the periods 2014–2019. Exploiting firm-level longitudinal data, we analyse loan demand and credit rationing probabilities, accounting for sample selection, unobserved heterogeneity and state dependence. Empirical results show that small and informationally opaque businesses, with deteriorated public support and credit history, face greater difficulties in obtaining bank loans. Furthermore, we provide evidence of a significant degree of state dependence in access to credit. In particular, firms that have already experienced credit restrictions are more likely to face further constraints, while enterprises that applied for bank financing in the past seem to have easier access to credit. Focusing on the subset of firms actually needing additional bank financing, we also find that past credit restrictions significantly reduce their current demand, providing evidence of a significant discouragement effect.

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“…While a recent report of the Financial Stability Board (FSB, 2019[24]) concludes that there are no significant and persistent effects of the Basel III capital and liquidity requirements on SME finance in general, there may be temporary effects caused by risk based capital requirements in certain jurisdictions. Fisera et al (2019) find similar short-term negative effects on SME access to finance in emerging markets and developing economies, in particular for those SMEs that did not have access to bank credit before Basel III implementation, i.e. first time borrowers.…”

Section: Executive Summarymentioning

confidence: 60%

Trade finance for SMEs in the digital era

2021

OECD SME and Entrepreneurship Papers

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is a multi-disciplinary inter-governmental organisation of 37 member countries which engages in its work an increasing number of non-members from all regions of the world. The Organisation's core mission today is to help governments work together towards a stronger, cleaner, fairer global economy. Through its network of 250 specialised committees and working groups, the OECD provides a setting where governments compare policy experiences, seek answers to common problems, identify good practice, and co-ordinate domestic and international policies. More information available: www.oecd.org. About the SME and Entrepreneurship PapersThe series provides comparative evidence and analysis on SME and entrepreneurship performance and trends and on a broad range of policy areas, including SME financing, innovation, productivity, skills, internationalisation and others. This paper is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and the arguments employed herein do not necessarily reflect the official views of OECD member countries.The paper was authorised for publication by Lamia Kamal-Chaoui, Director, Centre for Entrepreneurship, SMEs, Regions and Cities, OECD.This document, as well as any statistical data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.Note by Turkey: The information in the documents with reference to "Cyprus" relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Turkey recognizes the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Turkey shall preserve its position concerning the "Cyprus issue".Note by all the European Union Member States of the OECD and the European Union: The Republic of Cyprus is recognised by all members of the United Nations with the exception of Turkey. The information in the documents relates to the area under the effective control of the Government of the Republic of Cyprus.

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Basel III Implementation and SME Financing: Evidence for Emerging Markets and Developing Economies

Cited by 4 publications

References 34 publications

Basel Iii and SME Bank Finance in Germany

Basel Iii and SME Bank Finance in Germany

Heterogeneity and state dependence in firms’ access to bank credit

Trade finance for SMEs in the digital era

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