BANK LOANS FOR SMALL AND MEDIUM-SIZED ENTERPRISES (IN THE EXAMPLE OF THE BANKING SYSTEM OF THE RUSSIAN FEDERATION)

Abstract

The accessibility of external financing for small and medium-sized enterprises (SMEs) largely depends on the development trends of banking systems across different countries and the willingness and capability of commercial banks to extend loans to creditworthy SMEs. This paper posits that, even in post-crisis times, smaller and medium-sized banks in Russia are more likely to provide loans to SMEs compared to larger banking institutions. Data analysis from Russian banks indicates that as banks grow in size and expand their activities, their lending to legal entities, including SMEs and individual entrepreneurs, becomes more intense. However, the proportion of loans given to SMEs and individual entrepreneurs within the total loan portfolio of legal entities tends to decrease.