National Bank of Moldova publishes study on SME lending market segmentation and credit access constraints

The National Bank of Moldova published a research study on the characteristics and challenges of small and medium-sized enterprise (SME) lending in Moldova in 2023, based on responses from nine commercial banks, 54 non-bank credit organisations and regional comparative data from the World Bank Enterprise Surveys. The study finds a functionally segmented market in which banks and non-bank lenders serve different SME profiles, alongside structural constraints that limit access to finance for smaller firms. On the supply side, banks reported an average rejection rate of 22% and placed particular weight on financial documentation (78% of banks considered it critical) and real-estate collateral (89% considered it very important), while non-bank credit organisations reported a similar rejection rate but relied more on holistic business assessments for less information-transparent SMEs. On the demand side, 12% of small firms reported being fully credit-constrained versus 4% of large firms, with only 15% of small firms using bank finance compared with 50% of medium-sized firms; around 90% of small firms relied on internal funding. The paper also highlights an atypical collateral pattern in which large firms were more likely than small firms to provide collateral (85% versus 60% of loans), uneven financial infrastructure where credit bureau and payment systems were rated positively (over 80% satisfaction) but the collateral registry remained problematic, and limited innovation (45% of institutions reported no innovations in 2023). It points to differentiated policies, collateral registry modernisation and regulatory adaptation to support innovation as potential levers to improve SME access to finance, and notes that the views expressed are those of the author.