Template-Type: ReDIF-Article 1.0

Author-Name: Ádám Balog
Author-Workplace-Name: MKB Bank
Author-Email: balog.adam@mkb.hu

Title: Analysis of SME Segment Lending Processes in Light of Credit Guarantees in the European Union

Abstract: Funding as a problem has ranked much lower on the list of SMEs’ most daunting
challenges since 2011, according to the ECB’s SAFE survey. The accommodative
monetary policy of the central banks in advanced markets coupled with the low
interest rate environment has contributed to the fact that financing conditions
have been considerably relaxed at global level since 2010. In the EU, 80–85 per
cent of SME borrowing is realised through bank loans, thus entailing the risk
that companies’ access to finance may be constrained in conditions of financial
turbulence, which threatens the development of productivity. Increasing the role of
credit guarantees is an important tool in mitigating the impact of these trends, and
it assists financial institutions in helping the SME sector with funds in a recession
with greater certainty and lower risk.

Classification-JEL: E32, G15, G21, O16, O19
Keywords: credit guarantee, SME, banking system
Pages: 62-82
Volume: 17
Issue: 1
Year: 2018
File-URL: http://english.hitelintezetiszemle.hu/letoltes/fer-17-1-st3-balog.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:17:y:2018:i:1:p:62-82