Work detail

SME Access to Finance and Monetary Policy of the ECB

Author: Mgr. Martina Brázdová
Year: 2016 - winter
Leaders: prof. Roman Horváth Ph.D.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 81
Awards and prizes:
Link:
Abstract: The objective of this thesis is to provide new insights into determinants of firm access to
finance, and the role of the European Central Bank’s (ECB) monetary policy. Not only do we
describe and analyze the determinants of access to finance, but we focus on the theory of
financial intermediation, as well. The key part analyses European Commission (EC)/ECB
survey data for 16 euro area economies from 11 survey waves in the period from 2009 to
2014. We build our model using traditional firm-level variables such as firm size and age as
well as a novel measure of the ECB’s monetary policy stance – the shadow rate. We
hypothesize that smaller and younger firms with decreased profitability over the past 6
months and increased leverage over the same period are more likely to report problems with
access to finance. Our results are intuitively consistent with theoretical expectations and also
show that the looser the monetary policy of the ECB is, the lower the composite financing gap
indicator. Interestingly, we do not confirm the existence of risk taking channel of the
monetary policy. Overall, we make use of the most recent survey data, extend the dataset, and
use modified methodology for our estimation.
August 2020
MonTueWedThuFriSatSun
     12
34

56789
10111213141516
17181920212223
24252627282930
31      

Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance