Firm or bank weakness? Access to finance since the European sovereign debt crisis

Arbeitspapier

This paper uses a unique dataset where credit rejections experienced by euro area firms are matched with firm and bank characteristics. This allows us to study simultaneously the role that bank and firm weakness had in the credit reduction observed in the euro area during the sovereign debt crisis, and in credit developments characterising the post-crisis recovery. Compared with the existing literature matching borrowers' and lenders' characteristics, our dataset provides a better representation of euro area firms of small and medium size. Our findings suggest that, while firm balance sheet factors have been strong determinants of credit rejections, in the crisis period bank weakness made it harder to obtain external finance for firms located in stressed countries of the euro area.

Object Details

• ISBN: 978-92-899-4004-7
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 2361

Classification and Topics

• Classification: Wirtschaft ; Financial Markets and the Macroeconomy ; Financial Aspects of Economic Integration ; Financial Crises ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages
• Subject: Credit supply ; Bank lending ; Credit crunch ; European sovereign debt crisis

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Corbisiero, Giuseppe ; Faccia, Donata
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2020

Further information

• DOI: doi:10.2866/776537
• Handle: http://hdl.handle.net/10419/228239
• Last update: 10.03.2025, 11:44 AM CET