The EU economy depends heavily on banks, which provide around 75% of SME financing. As new regulations such as CRR3 reshape capital requirements, strategic adaptation is essential to sustain credit flows to SMEs.
At the same time, the Savings and Investment Union (SIU) seeks to mobilise up to €10 trillion in household savings to close Europe’s €750–800 billion annual investment gap. Yet limited SME listings and fragmented regulation continue to restrict capital flows. Tools such as securitisation, expanded rating coverage, and blended finance can help channel savings more effectively into the...