The SMEs' access to bank loans continued to deteriorate in 2012, according to a report

The results of the ECB survey shows that euro area SMEs’ external financing needs increased between October 2011 and March 2012. At the same time, the survey results show that access to bank loans continued to deteriorate.

The sixth report on the results of the “Survey on the access to finance of small and medium-sized enterprises (SMEs) in the euro area” conducted by the European Central Bank provides evidence mainly on the change in the financial situation, financing needs and access to financing of SMEs in the euro area, compared with large firms from October 2011 to March 2012. It also provides an overview of developments in SME access to finance across euro area countries.

Among the findings reported, euro area SMEs’ external financing needs increased between October 2011 and March 2012. In addition, the survey results show that access to bank loans continued to deteriorate; on balance, firms reported a worsening in the availability of bank loans (20%, up from 14% in the previous survey round). Moreover, the survey results point to somewhat higher rejection rates when applying for a loan (13%, up from 10%). Meanwhile, the percentage of respondents reporting access to finance as their main problem remained broadly unchanged (17%, compared with 16%).

This survey was conducted by the ECB, which repeats a part of the survey every six months in order to assess the latest developments in financing conditions for firms in the euro area. A joint ECB/European Commission survey round is conducted every two years.