Working Paper

Basel III Implementation and SME Financing : Evidence for Emerging Markets and Developing Economies

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Fisera, Boris
dc.contributor.author
Horvath, Roman
dc.contributor.author
Melecky, Martin
dc.date.accessioned
2019-12-13T20:05:58Z
dc.date.available
2019-12-13T20:05:58Z
dc.date.issued
2019-12
dc.date.lastModified
2019-12-14T05:11:14Z
dc.description.abstract
This paper examines the effect of Basel III implementation on the access to finance of small and medium-size enterprises in 32 emerging markets and developing economies. Analyzing rich, repeated cross-sectional data and a panel of matched firm-bank data in a difference-in-differences setting with sample selection adjustment, the authors find a short-term, moderately negative effect of Basel III on small and medium-size enterprises' access to financing. The results suggest that firms with access to bank credit prior to Basel III implementation could have been affected less than firms that were initially on the fringes of financial inclusion—firms with only a bank account. The paper fails to find any additional heterogeneous effects across firm size or age, bank capitalization or liquidity, or across countries that transitioned to Basel III from Basel II versus Basel 2.5. Overall, the initial conditions of the banking system as well as of complementary business and financial regulation can co-determine the size of short-term costs from the newly implemented global financial regulation in emerging markets and developing economies.
en
dc.identifier
http://documents.worldbank.org/curated/en/441951575300867782/Basel-III-Implementation-and-SME-Financing-Evidence-for-Emerging-Markets-and-Developing-Economies
dc.identifier.uri
http://hdl.handle.net/10986/33011
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 9069
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
BANK REGULATION
dc.subject
BASEL III
dc.subject
FINANCIAL REGULATION
dc.subject
SMALL AND MEDIUM-SIZED ENTERPRISES
dc.subject
SME FINANCE
dc.subject
FIRM-LEVEL DATA
dc.subject
IMPACT EVALUATION
dc.subject
EMERGING MARKET ECONOMIES
dc.title
Basel III Implementation and SME Financing
en
dc.title.subtitle
Evidence for Emerging Markets and Developing Economies
en
dc.type
Working Paper
en
okr.date.disclosure
2019-12-02
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/441951575300867782/Basel-III-Implementation-and-SME-Financing-Evidence-for-Emerging-Markets-and-Developing-Economies
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-9069
okr.identifier.externaldocumentum
090224b0873922d5_1_0
okr.identifier.internaldocumentum
31601956
okr.identifier.report
WPS9069
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/441951575300867782/pdf/Basel-III-Implementation-and-SME-Financing-Evidence-for-Emerging-Markets-and-Developing-Economies.pdf
en
okr.topic
Finance and Financial Sector Development :: Banks & Banking Reform
okr.topic
Finance and Financial Sector Development :: Financial Regulation & Supervision
okr.topic
Finance and Financial Sector Development :: Microfinance
okr.topic
Private Sector Development :: Small and Medium Size Enterprises
okr.unit
Finance, Competitiveness and Innovation Global Practice

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