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Small‐ And Medium‐Sized Enterprise Financing And Securitization: Firm‐Level Evidence From The Euro Area

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  • Orçun Kaya
  • Oliver Masetti

Abstract

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)

Suggested Citation

  • Orçun Kaya & Oliver Masetti, 2019. "Small‐ And Medium‐Sized Enterprise Financing And Securitization: Firm‐Level Evidence From The Euro Area," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 391-409, January.
    • Handle: RePEc:bla:ecinqu:v:57:y:2019:i:1:p:391-409
    DOI: 10.1111/ecin.12691
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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