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Assessing the impact of the EIB’s intermediated lending to SMEs during funding shocks

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  • Raschid Amamou

    (European Central Bank)

  • Áron Gereben

    (European Investment Bank)

  • Marcin Wolski

    (European Investment Bank)

Abstract

We look at the impact of intermediated funding provided by the European Investment Bank (EIB) on the performance of small- and medium-sized enterprises (SMEs) in the European Union between 2008 and 2014 — the Great Financial Crisis (GFC) and its aftermath. We use a combination of propensity score matching and difference-in-differences to evaluate the impact of EIB-supported credit on corporate performance using firm-level data. We find that access to EIB-supported funding had a positive effect on employment and investment in beneficiary firms. This positive effect was stronger in those countries where banks have traditionally relied more strongly on non-core liabilities, such as interbank funding. All in all, our results indicate that EIB-supported funding made a significant and positive difference to the economic and financial performance of the beneficiary SMEs in the aftermath of the Great Financial Crisis.

Suggested Citation

  • Raschid Amamou & Áron Gereben & Marcin Wolski, 2023. "Assessing the impact of the EIB’s intermediated lending to SMEs during funding shocks," Small Business Economics, Springer, vol. 60(3), pages 975-1007, March.
    • Handle: RePEc:kap:sbusec:v:60:y:2023:i:3:d:10.1007_s11187-022-00620-x
    DOI: 10.1007/s11187-022-00620-x
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    More about this item

    Keywords

    SMEs; Access to finance; International financial institutions; Funding shocks;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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