To be sure, uninsured deposits are more expensive than insured deposits, and bank costs would decline if their currently uninsured liabilities received a government guarantee. But that is a different matter, and raises the issue of a subsidy in its starkest terms. I might add that throughout the 1990s, small banks’ return on equity was well maintained.
Today, we are officially launching the CRD project. The project aims to improve access to finance among SMEs by promoting risk-based lending which uses credit scoring models to assess the capacity of SMEs to repay their loan. The project is a tangible step in building a sustainable financing ecosystem for SMEs.