Did the Crisis Induce Credit Rationing for French SMEs

Posted: 14 Jan 2014

See all articles by Elisabeth Kremp

Elisabeth Kremp

National Bureau of Economic Research (NBER); Banque de France - Direction des Entreprises

Patrick Sevestre

Aix-Marseille University

Date Written: January 14, 2014


This paper focuses on the access of independent French SMEs to bank lending and analyzes whether the observed evolution of credit to SMEs over the recent period was "demand driven" as a result of the decrease in firms' activity and investment projects or was "supply driven" with an increase in credit "rationing" stemming from a more cautious behavior of banks. Based on a sample of around 60,000 SMEs, we come to the conclusion that, despite the stronger standards used by banks when granting credit, French SMEs do not appear to have been strongly affected by credit rationing since 2008. This result goes against the common view that SMEs suffered from a strong credit restriction during the crisis but is perfectly in line with the results of several surveys about the access to finance of SMEs recently conducted in France.

Keywords: SME, credit rationing, Bank loans, crisis

JEL Classification: E51, G21

Suggested Citation

Kremp, Elisabeth M. and Sevestre, Patrick, Did the Crisis Induce Credit Rationing for French SMEs (January 14, 2014). Journal of Banking and Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2378895

Elisabeth M. Kremp (Contact Author)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Banque de France - Direction des Entreprises

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Paris Cedex 01 75049

Patrick Sevestre

Aix-Marseille University ( email )

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3 Avenue Robert Schuman,
Aix-en-Provence, 13628

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