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ESBG pushes for SME discount factor during EBA roundtable

ESBG pushes for SME discount factor during EBA roundtable

Says keeping current capital reduction factor allows adequate credit flow to SMEs

​>> See the latest ESBG position on SME financing

​​​BRUSSELS, 2 March 2016 – ESBG joined SME associations and banking industry representatives at the European Banking Authority (EBA) SME Roundtable held on February 29 to discuss results of the EBA report on the SME Supporting Factor (SF). 

To be sent this month to the European Commission, the report acknowledges that a limited amount of data available prevents any strong conclusion on the real impact of the SME SF on lending by banks to small and medium-sized firms. Although no overwhelming evidence has been found of an additional SME lending boost attributable to supporting factor, there remains a solid case to strengthen the monitoring of the SME SF and to harmonise the SME definition across EU countries to allow for a more comprehensive analysis of the SME SF's future impact. The EBA will recommend to address the calibration of the credit risk framework in a more comprehensive manner. 

ESBG argues that the maintenance of the capital reduction factor of 0.7619 is necessary to allow adequate credit flows to SMEs.

>> See the latest ESBG position on SME financing 

SME finance; Capital Markets Union; Supervision; Regulation