Template-Type: ReDIF-Paper 1.0
Author-Name: Giovanni Ferri 
Author-X-Name-First: Giovanni
Author-X-Name-Last: Ferri
Author-Email: g.ferri@lumsa.it
Author-Workplace-Name: LUMSA University 
Author-Name: Pierluigi Murro 
Author-X-Name-First: Pierluigi 
Author-X-Name-Last: Murro
Author-Email: p.murro@lumsa.it
Author-Workplace-Name: LUMSA University
Author-Name: Zeno Rotondi
Author-X-Name-First: Zeno 
Author-X-Name-Last: Rotondi
Author-Email: zeno.rotondi@unicredit.eu
Author-Workplace-Name: UniCredit Bank
Title: Bank Lending Technologies and SME Credit Rationing in Europe in the 2009 Crisis

Abstract: The first wave of the global financial crisis hit Europe in the last part of 2008 and through 2009. With banks in a tailspin, credit rationing intensified – as measured in various different ways – particularly for the small and medium sized enterprises (SMEs). The extent of such retrenchment in the supply of credit could reflect not only the worsened general condition of the European banks but also vary at the micro level depending on the lending technologies being used in the SME-main bank rapport. Using the EFIGE database, we examine SME credit rationing in seven EU countries (Austria, France, Germany, Hungary, Italy, Spain and the UK) and try to assess the extent to which differences in the lending technologies and in the status of the firm-main bank relationship contributed to the phenomenon. We find that a firm matching with a bank using the transactional lending technology was more likely to end up rationed for credit during the first part of the financial crisis.

Length: 16 pages
Creation-Date: 2016-02
Publication-Status: 
File-URL: https://repec.lumsa.it/wp/wpC05.pdf
File-Format: Application/pdf
Number: wpC05
Classification-JEL: G21; D82; G30
Keywords: Bank-Firm Relationships, Asymmetric Information, Credit Rationing.
Handle: RePEc:lsa:wpaper:wpC05