The impact of the Public Sector Purchase Programme on lending to SMEs

Skovorodov, Vlad and Silva, Rui (2025) The impact of the Public Sector Purchase Programme on lending to SMEs. Journal of Macroeconomics. ISSN 0164-0704

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Abstract

We study the impact of the Public Sector Purchase Programme (PSPP) between 2015 and 2018 on lending volumes in the Eurozone. We find a connection between purchases under the PSPP and: (i) lending volumes on types of loans mainly obtained by SMEs; (ii) loans below 1 million euros during the expansion phase of the program until the end of 2016, and loans above 1 million euros in its contraction phase; (iii) substantial changes in lending volumes in economies with high levels of public debt and distressed financial systems, and; (iv) types of loans mainly obtained by SMEs in more resilient economies. These findings point to the effectiveness of the credit channel as a transmission mechanism of unconventional monetary policy and support the decision of the ECB to reactivate the program at the end of 2019.

Item Type:	Article
Additional Information:	Data availability statement: The data used in this research are available upon reasonable request from the corresponding author. Funding information: This research was not supported by any funding source.
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Applied Econometrics And Finance Faculty of Social Sciences > Research Groups > Economic Theory
Related URLs:	https://www.sciencedirect.com/science/ar...
Depositing User:	LivePure Connector
Date Deposited:	09 Jan 2025 01:03
Last Modified:	09 Jan 2025 01:03
URI:	https://ueaeprints.uea.ac.uk/id/eprint/98120
DOI:	10.1016/j.jmacro.2024.103659

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