Paper looks at EU attempt to increase capital supply to SMEs

Measure introduced in CRR has benefited medium but not small businesses, researchers say

European Union map

A working paper published by the Bank of Spain looks at the effect of a European Union regulation that aims to increase the supply of capital to small and medium enterprises.

Sergio Mayordomo and María Rodríguez-Moreno’s paper Did the bank capital relief induced by the supporting factor enhance SME lending? looks at the SSME supporting factor (SF) of the European Union’s Capital Requirements Regulation, or CRR.

This specifies that “capital requirements for credit risk on exposures to SMEs

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