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  • Financial Stability Board Publishes Consultation on Impact of Regulatory Reforms for SME Financing

    06/07/2019
    The Financial Stability Board has published a consultation paper on the effects of post-financial crisis regulatory reforms on financing for small- and medium-sized enterprises. The FSB’s analysis suggests that there have not been material or persistent negative effects on SME financing, although some evidence suggests the more stringent Basel III capital requirements may have slowed the pace and tightened the conditions of SME lending at the least capitalized banks. The consultation paper seeks comments on the FSB’s findings, with regard to the following specific areas:
     
    1. SME financing trends – respondents should consider whether the report accurately describes the structure of SME financing and comprehensively covers SME financing trends and drivers;
    2. Financial regulations – respondents are asked whether the report accurately balances the significance for SME financing of financial regulatory reforms against other factors and whether the report accurately describes the transmission channels through which Basel III reforms impact bank financing to SMEs;
    3. Approach of the evaluation – respondents should consider the methodology adopted in the report and the cost-benefit considerations of the financial regulatory reforms with respect to SME financing; and
    4. Effect of the reforms – respondents are asked whether the report’s findings on the effects of the financial regulatory reforms reflect the experiences of the public respondents and whether the Basel III reforms are having differentiated effects on the provision of SME financing across jurisdictions.

    Responses to the consultation should be submitted by August 7, 2019. The FSB intends to publish its final report in November 2019.

    View the FSB's consultation paper.

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