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SMALL‐ AND MEDIUM‐SIZED ENTERPRISE FINANCING AND SECURITIZATION: FIRM‐LEVEL EVIDENCE FROM THE EURO AREA
Author(s) -
Kaya Orçun,
Masetti Oliver
Publication year - 2019
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/ecin.12691
Subject(s) - securitization , business , finance , financial system , credit enhancement , access to finance , economics , credit risk , credit reference
This paper analyzes the impact of securitization on access to finance for small and medium‐sized enterprises (SMEs) in the euro area. Using firm‐level survey data on SME financing conditions, we show that an increase in securitization issuance reduces the probability of SMEs facing credit constraints and decreases the costs of bank financing for nonconstrained firms. Our results reveal that in addition to the volume of securitization, its type and quality matter for credit extension to SMEs. The paper thus provides empirical support for recent initiatives to revive securitization in Europe and for effective monetary policy transmission in the euro area. ( JEL D22, E44, E51, E58, G21)