SMEs’ growth under financing constraints and banking markets integration in the euro area

We explore the impact of financing constraints and the role of banking markets integration on SMEs’ growth. The data are drawn from the ECB/SAFE survey on SMEs’ access to finance aggregated at country level for the largest 11 euro-area countries over 2009-2015. Our findings suggest that financing constraints hamper SMEs’ growth and that the effect is stronger for perceived, rather than actual, financing constraints. On the other hand, increased banking market integration in the euro area appears to foster SMEs’ growth. Furthermore, we find that the reduction in financing constraints is crucial in the transmission channel from banking markets integration to growth. This effect appears significantly stronger when integration is measured by the intensity of cross-border lending than through convergence in interest rates to loans to non-financial corporations

Decision 2012/133 of the European Central Bank of 27 February 2012 repealing Decision ECB/2010/3 on temporary measures relating to the eligibility of marketable debt instruments issued or guaranteed by the Greek Government

decision revoking the first waiver that allowed Greek debt in open-market operations regardless of credit ratin

Decision (EU) 2015/300 of the European Central Bank of 10 February 2015 on the eligibility of marketable debt instruments issued or fully guaranteed by the Hellenic Republic

decision revoking the third waiver that allowed Greek debt in open-market operations regardless of credit ratin

Securities Lending of Holdings Under the Asset Purchase Programme (APP) and Pandemic Emergency Purchase Programme (PEPP)

General PSPP securities lending framework and securities lending arrangements of the EC

Opinion of the European Central Bank of October 23, 2008

Opinion of the European Central Bank at the request of the Banca d\u27Italia on behalf of the Italian Ministry for Economic Affairs and Finance on two Decree-Laws containing urgent measures to guarantee the stability of the banking system and the continuity of the provision of credit