New research on sources of the small firm financing premium from euro area banks

06 December 2016 Press Release

The Central Bank has published a new Research Technical Paper by Sarah Holton and Fergal McCann titled ‘Sources of the small firm financing premium: Evidence from euro area banks’.

  • Cost of bank finance increased disproportionately for smaller enterprises during recent euro area crisis.
  • Banks with greater market share more likely to pass on greater interest rate increases to smaller enterprise borrowers
  • These effects are shown to be amplified in periods of macroeconomic weakness.


The views presented in Research Technical Papers are those of the authors alone and do not necessarily represent the official views of the Central Bank of Ireland.

View all Research Technical Papers.