Access conditions to bank credit in Europe play a decisive role in the survival of small- and medium-sized enterprises (SMEs). The economic literature points out that obstacles to credit access for SMEs mainly derive from their difficulty in producing high quality collaterals and from the opacity of their creditworthiness. The lack of transparency increases asymmetric information, which tends to be more severe during times of economic crises and leads to credit rationing and suboptimal lending to viable SMEs. Therefore, factors such as the legal-institutional environment and the quality of social capital may be crucial in increasing level of trust in the credit market, strengthening the relationship between creditors and borrowers, and consequently reducing the cost of financing. In this chapter, we address these issues with respect to European SMEs by using the European Central Bank (ECB) Survey on the Access to Finance of Enterprises (SAFE). Specifically, we employ data on eleven major economies of the euro area for the period 2009–2013.

Legal-institutional environment, social capital and cost of bank financing for SMEs: Evidence from the Euro-area / Galli, Emma; Mascia, Danilo; Rossi, Stefania P. S.. - STAMPA. - (2017), pp. 59-81. [Palgrave Macmillan Studies in Banking and Financial Institutions].

Legal-institutional environment, social capital and cost of bank financing for SMEs: Evidence from the Euro-area

GALLI, EMMA;
2017

Abstract

Access conditions to bank credit in Europe play a decisive role in the survival of small- and medium-sized enterprises (SMEs). The economic literature points out that obstacles to credit access for SMEs mainly derive from their difficulty in producing high quality collaterals and from the opacity of their creditworthiness. The lack of transparency increases asymmetric information, which tends to be more severe during times of economic crises and leads to credit rationing and suboptimal lending to viable SMEs. Therefore, factors such as the legal-institutional environment and the quality of social capital may be crucial in increasing level of trust in the credit market, strengthening the relationship between creditors and borrowers, and consequently reducing the cost of financing. In this chapter, we address these issues with respect to European SMEs by using the European Central Bank (ECB) Survey on the Access to Finance of Enterprises (SAFE). Specifically, we employ data on eleven major economies of the euro area for the period 2009–2013.
2017
Access to bank credit and SME financing, Palgrave Macmillan
978-3-319-41362-4
Credit access; SMEs; Legal-Institutional Environment; SocialCapital; Cost of Bank Financing
02 Pubblicazione su volume::02a Capitolo o Articolo
Legal-institutional environment, social capital and cost of bank financing for SMEs: Evidence from the Euro-area / Galli, Emma; Mascia, Danilo; Rossi, Stefania P. S.. - STAMPA. - (2017), pp. 59-81. [Palgrave Macmillan Studies in Banking and Financial Institutions].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/952459
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