SME funding without banks? On the interplay of banks and markets

Arbeitspapier

The Capital Markets Union-project of the European Commission aims for an increase of market-based debt financing of small and medium-sized enterprises (SMEs), complementing bank lending. In this essay we argue that rather than focussing on pure non-bank lending, a reasonable mix of bank- and market-based financing should be considered. Banks are said to have a comparative advantage in critical lending functions such as credit screening, debtor monitoring and debt renegotiation. All forms of lending require a persistent skin-in-the-game of critical players in order to be effective. The regulator should insist on full disclosure of skin-in-the-game, thereby improving capital allocation and reducing systemic risks.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: SAFE White Paper ; No. 44

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: SME ; funding ; capital markets ; lending instruments ; banks

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Franke, Günter ; Krahnen, Jan Pieter
• Ereignis: Veröffentlichung
• (wer): Goethe University Frankfurt, SAFE - Sustainable Architecture for Finance in Europe
• (wo): Frankfurt a. M.
• (wann): 2017

Weitere Informationen

• Handle: http://hdl.handle.net/10419/149465
• URN: urn:nbn:de:hebis:30:3-429073
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ