The impact of Basel II reforms : a contraction in SME lending
Name
890376389-MIT.pdf
Description
Full printable version
Size
6.56 MB
Format
Adobe PDF
Checksum (MD5)
a4270d3495af5ea10b8bc0de09ddedec
Author(s)
Charpentier, Apolline
Advisor(s)
Athanasios Orphanides.
Alternative Title
Impact of Basel 2 reforms : a contraction in SME lending
Impact of Basel Two reforms : a contraction in SME lending
Date Issued
2014
Publisher
Massachusetts Institute of Technology
Abstract
The implementation of Basel II reforms has been designed to protect the international financial system from major bank collapses through the enforcement of minimum capital adequacy ratios. This new set of rules has raised concerns of triggering changes in institutions' business models leading to credit contraction, which in turn could potentially contribute to slower global economic development. Small and Middle Enterprises, which have traditionally been engines of growth, innovation, and R&D in Europe, are highly reliant on bank loans as opposed to equity funding. This thesis focuses on the specific impact of Basel II reforms on SME access to financing. The paper is structured around four sections. Part I provides a technical summary of the regulation, focusing on the specific capital requirements for SMEs. Part II reviews today's literature on the topic. Finally, parts III and IV respectively provide a theoretical and empirical examination of the consequences of the reforms on SME financing. Based on these analyses, this thesis supports the conclusion that Basel II reforms have not been the cause of a contraction in SME lending.
Description
Thesis: S.M. in Management Studies, Massachusetts Institute of Technology, Sloan School of Management, 2014.
Cataloged from PDF version of thesis.
Includes bibliographical references.
Subjects
Sloan School of Management.
MIT Department
Sloan School of Management
Terms of Use
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