State Aid to Banks and Credit for SMEs: Is There a Need for Conditionality?

108 Pages Posted: 26 May 2016

See all articles by Rym Ayadi

Rym Ayadi

HEC Montreal

Willem De Groen

Centre for European Policy Studies (CEPS)

Date Written: February 25, 2015

Abstract

This study assesses whether lending to SMEs could and should be one of the conditions for a bank to qualify to receive State aid. The assessment consists of a legal and an economic part. In the legal part the possibilities to apply the conditionality to State aid are explored. The economic part consists of a qualitative and quantitative assessment at both the member state- and bank level. The results could provide policy-makers with measures that reduce the obstacles for SMEs in case banks are bailed out, as well as to maximise the social return on taxpayers’ money. This study was prepared by Policy Department A at the request of the Committee on Economic and Monetary Affairs (ECON).

Keywords: state aid, bank, credit, risk, cooperative, financial crise, economic crise, cooperative banks, SME, small and medium enterprises

Suggested Citation

Ayadi, Rym and De Groen, Willem, State Aid to Banks and Credit for SMEs: Is There a Need for Conditionality? (February 25, 2015). Available at SSRN: https://ssrn.com/abstract=2784300 or http://dx.doi.org/10.2139/ssrn.2784300

Rym Ayadi (Contact Author)

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3
Canada

Willem De Groen

Centre for European Policy Studies (CEPS) ( email )

1 Place du Congres, 1000
Brussels, 1000
Belgium

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