The real economy: Banks finance SMEs, households
Retail and savings banks are indispensable actors for long-term financing of the EU economy.
>> ESBG position on Capital Markets Union
>> High-level principles on SME feedback
Locally focused banks have a big stake in making sure that Europe’s real economy – SMEs in particular – grow,
employ and export. Data show savings and retail banks are some of Europe's most important providers of
SME finance, with hundreds of billions in SME loans on the books.
An SME strategy framed by the European Commission incoming president hinges on financing. Europeans
look to savings and retail banks. Studies reveal that the vast majority of European SMEs prefer loans by credit
institutions as the primary source for external funding. That funding helps form businesses and grow them.
ESBG member savings and retail banks have long-standing
experience in Europe’s regions, and proximity to local businesses
enables them to build irreplaceable knowledge, and cultivate and
maintain trust-based relationships with SMEs. This approach has
proven over time to be the smart, prudent path to spur sustained
growth and jobs in cities, rural areas and everywhere in between.
SMEs are essential to create a circular and a competitive economy
that can remain a strong exporting force.
Related policy positions from WSBI-ESBG on SME finance
>> Capital Markets Union
>> Crowdfunding
>> ESBG-UEAPME-FEE Joint Position
>> SME Supporting Factor