Effects of the New Capital Regulations of "Basel III" on the Financing of Small and Medium Sized Enterprises in Austria

The study's main feature consists in econometric estimations aiming at an approximate quantification of the effects of capital requirements for banks on the lending of small and medium sized Austrian regional banks to small and medium sized non-financial enterprises (SMEs). Small and medium sized banks focus on financing SMEs and therefore lend themselves to a detailed analysis of the effects of changes in banking regulation on credit financing in this business sector, which is particularly important for the Austrian economy. The study thus establishes an empirically based framework for the assessment of the potential effects of Basel III on the financing of SMEs in Austria.