https://doi.org/10.52903/wp2024333
DO MACROPRUDENTIAL POLICIES MAKE SMES MORE-OR-LESS DISCOURAGED TO APPLY FOR A BANK LOAN?
Dimitris Anastasiou
Athens University of Economics and Business
Fotios Pasiouras
Montpellier Business School, France
Anastasios Rizos
Bank of Greece
Artemis Stratopoulou
Athens University of Economics and Business
ABSTRACT
This paper investigates the effect of macroprudential policies (MAPs) on discouraged small and medium-sized firms (bank borrowers). Employing confidential firm-level survey data for the Euro area countries and estimating Probit models, we find that several MAPs significantly reduce SMEs discouragement for applying for a bank loan. The marginal effects are, in most cases, highly significant, while the economic magnitude of implementing financial institutions-targeted MAPs is also significant. However, this finding is highly dependent on the degree of a firm’s credit quality. Our results are driven by the demand side; a more stable and better-capitalized banking system could make SMEs less discouraged from applying for a bank loan.
JEL-classifications: D81, E58, G10, G28
Keywords: Discouraged Borrowers; Credit Rationing; Macroprudential Policy; Eurozone SMEs
Disclaimer: : The views expressed in this paper are those of the authors and not necessarily those of the Bank of Greece.
Correspondence:
Anastasios Rizos
Bank of Greece
El.Venizelos 21, 10250 Athens, Greece
Tel.: +30-2103203604
arizos@bankofgreece.gr