Determinants of bank lending to SMEs in the EU

Janković, Irena and Kovačević, Vlado and Ljumović, Isidora and Popović, Svetlana (2023) Determinants of bank lending to SMEs in the EU. Ekonomika preduzeća, 71 (5-6). pp. 260-270. ISSN 0353-443X

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Abstract

This study examines factors that influence bank lending to SMEs in the EU. We employ relevant firm-, industry-, and macro-level variables to confirm the significance of bank lending process determinants through multiple panel data models. We find that increase in GDP p.c., event of bankruptcy and shorter resolving time positively impact SMEs access to loans. SMEs with higher turnover and working in construction or manufacturing sectors have a better chance to obtain bank loans, while access to bank financing is negatively affected by increase in inflation rate and operations in service sector.

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