Such firms, which account for a large share of employment in the euro area, tend to be more reliant on banks for lending and thus are more likely to experience funding shocks when banks restrict supply.
[25]  Chart 9 Bank loan volumes of fringe firms relative to the total market since the policy hike (ratios to overall market developments)  Sources: ECB (CSEC, AnaCredit, RIAD), Orbis and ECB calculations.