The objective of this project is to quantify the credit restrictions of small- and medium-sized enterprises (SMEs) financed by banks that were heavily affected by the 2009 financial crisis.

Merging ZEW firm-level and Bundesbank bank-level data for the first time, we  also investigate empirically whether banks have implemented more quantitatively-oriented credit rating schemes that go beyond the general trend towards intensified credit scores used in the industry, and examine the role of relationship banking throughout the crisis.

Making use of the identification of distressed banks and their customers, we explore the negative allocation effects of financing restrictions to SMEs using corporate R&D expenses as a measure of real economic effects.