Bank Weakness Hampers Access to Finance for Euro Area Firms During Crisis.
The study looked at why some businesses in Europe had trouble getting loans during and after the financial crisis. By analyzing data on loan rejections and company details, the researchers found that during the crisis, both weak company finances and struggling banks made it harder for businesses in troubled countries to borrow money. This means that not only did companies with financial problems face difficulties, but banks that were also struggling made it even tougher for businesses to get the funding they needed.