会计学毕业论文中英文资料外文翻译文献.docx
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会计学毕业论文中英文资料外文翻译文献
会计学
中英文资料外文翻译文献
外文资料原文
Title:
Future of SME finance (Background –the environment for
SME finance has changed
Future economic recovery will depend on the possibility of Crafts,Trades and
SMEs to exploit their potential for growth and employment creation.
SMEs make a major contribution to growth and employment in the EU and are at
the heart of the Lisbon Strategy, whose main objective is to turn Europe into the most
competitive and dynamic knowledge-based economy in the world. However, the
ability of SMEs to grow depends highly on their potential to invest in restructuring,
innovation and qualification. All of these investments need capital and therefore
access to finance.
Against this background the consistently repeated complaint of SMEs about their
problems regarding access to finance is a highly relevant constraint that endangers the
economic recovery of Europe.
Changes in the finance sector influence the behavior of credit institutes towards
Crafts, Trades and SMEs. Recent and ongoing developments in the banking sector add
to the concerns of SMEs and will further endanger their access to finance. The main
changes in the banking sector which influence SME finance are:
•Globalization and internationalization have increased the competition and the
profit orientation in the sector;
•worsening of the economic situations in some institutes (burst of the ITC
bubble, insolvencies) strengthen the focus on profitability further;
•Mergers and restructuring created larger structures and many local branches,
which had direct and personalized contacts with small enterprises, were closed;
•up-coming implementation of new capital adequacy rules (Basel II) will also
change SME business of the credit sector and will increase its administrative costs;
•Stricter interpretation of State-Aide Rules by the European Commission
eliminates the support of banks by public guarantees; many of the effected banks are
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very active in SME finance.
All these changes result in a higher sensitivity for risks and profits in the finance
sector.
The changes in the finance sector affect the accessibility of SMEs
to finance.
Higher risk awareness in the credit sector, a stronger focus on profitability and
the ongoing restructuring in the finance sector change the framework for SME finance
and influence the accessibility of SMEs to finance. The most important changes are:
•In order to make the higher risk awareness operational, the credit sector
introduces new rating systems and instruments for credit scoring;
•Risk assessment of SMEs by banks will force the enterprises to present more
and better quality information on their businesses;
•Banks will try to pass through their additional costs for implementing and
running the new capital regulations (Basel II) to their business clients;
•due to the increase of competition on interest rates, the bank sector demands
more and higher fees for its services (administration of accounts, payments systems,
etc.), which are not only additional costs for SMEs but also limit their liquidity;
•Small enterprises will lose their personal relationship with decision-makers
in local branches – the credit application process will become more formal and
anonymous and will probably lose longer;
•the credit sector will lose more and more its “public function” to provide
access to finance for a wide range of economic actors, which it has ina number of
countries, in order to support and facilitate economic growth; the profitability of
lending becomes the main focus of private credit institutions.
All of these developments will make access to finance for SMEs even more
difficult and / or will increase the cost of external finance. Business start-ups and
SMEs, which want to enter new markets, may especially suffer from shortages
regarding finance. A European Code of Conduct between Banks and SMEs would
have allowed at least more transparency in the relations between Banks and SMEs
and UEAPME regrets that the bank sector was not able to agree on such a
commitment.
Towards an encompassing policy approach to improve the access of Crafts,
Trades and SMEs to finance
All analyses show that credits and loans will stay the main source of finance for
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the SME sector in Europe. Access to finance was always a main concern for SMEs,
but the recent developments in the finance sector worsen the situation even more.
Shortage of finance is already a relevant factor, which hinders economic recovery in
Europe. Many SMEs are not able to finance their needs for investment.
Therefore, UEAPME expects the new European Commission and the new
European Parliament to strengthen their efforts to improve the framework conditions
for SME finance. Europe’s Crafts, Trades and SMEs ask for an encompassing policy
approach, which includes not only the conditions for SMEs’ access to lending, but
will also strengthen their capacity for internal finance and their access to external risk
capital.
From UEAPME’s point of view such an encompassing approach should be based
on three guiding principles:
•Risk-sharing between private investors, financial institutes, SMEs and public
sector;
•Increase of transparency of SMEs towards their external investors and
lenders;
•improving the regulatory environment for SME finance.
Based on these principles and against the background of the changing
environment for SME finance, UEAPME proposes policy measures in the following
areas:
1.NewCapitalRequirementDirective:
SMEfriendly
implementation of Basel II
Due to intensive lobbying activities, UEAPME, together with other Business
Associations in Europe, has achieved some improvements in favour of SMEs
regarding the new Basel Agreement on regulatory capital (Basel II). The final
agreement from the Basel Committee contains a much more realistic approach toward
the real risk situation of SME lending for the finance market and will allow the
necessary room for adaptations, which respect the different regional traditions and
institutional structures.
However, the new regulatory system will influence the relations between Banks
and SMEs and it will depend very much on the way it will be implemented into
European law, whether Basel II becomes burdensome for SMEs and if it will reduce
access to finance for them.
The new Capital Accord form the Basel Committee gives the financial market
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authorities and herewith the European Institutions, a lot of flexibility. In about 70
areas they have room to adapt the Accord to their specific needs when implementing it
into EU law. Some of them will have important effects on the costs and the
accessibility of finance for SMEs.
UEAPME expects therefore from the new European Commission and the new
European Parliament:
•The implementation of the new Capital Requirement Directive will be costly
for the Finance Sector (up to 30 Billion Euro till 2006) and its clients will have to pay
for it. Therefore, the implementation – especially for smaller banks, which are often
very active in SME finance – has to be carried out with as little administrative
burdensome as possible (reporting obligations, statistics, etc.).
•The European Regulators must recognize traditional instruments for
collaterals (guarantees, etc.) as far as possible.
•The European Commission and later the Member States should take over the
recommendations from the European Parliamentwith regard to granularity, access
to retail portfolio, maturity, partial use, adaptation of thresholds, etc., which will ease
the burden on SME finance.
2. SMEs need transparent rating procedures
Due to higher risk awareness of the finance sector and the needs of Basel II,
many SMEs will be confronted for the first time with internal rating procedures or
credit scoring systems by their banks. The bank will require more and better quality
information from their clients and will assess them in a new way. Both up-coming
developments are already causing increasing uncertainty amongst SMEs.
In order to reduce this uncertainty and to allow SMEs to understand the
principles of the new risk assessment, UEAPME demands transparent rating
procedures – rating procedures may not become a “Black Box” for SMEs:
•The bank should communicate the relevant criteria affecting the rating of
SMEs.
•The bank should inform SMEs about its assessment in order to allow SMEs
to improve.
The negotiations on a European Code of Conduct between Banks and SMEs ,
which would have included a self-commitmentfor transparent rating procedures by
Banks, failed. Therefore, UEAPME expects from the new European Commission and
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the new European Parliament support for:
•binding rules in the framework of the new Capital Adequacy Directive,
which ensure the transparency of rating procedures and credit scoring systems for
SMEs;
•Elaboration of national Codes of Conduct in order to improve the relations
between Banks and SMEs and to support the adaptation of SMEs to the new financial
environment.
3. SMEs need an extension of credit guarantee systems with a
special focus on Micro-Lending
Business start-ups, the transfer of businesses and innovative fastgrowth SMEs
also depended in the past very often on public support to get access to finance.
Increasing risk awareness by banks and the stricter interpretation of State Aid Rules
will further increase the need for public support.
Already now, there are credit guarantee schemes in many countries on the limit
of their capacity and too many investment projects cannot be realized by SMEs.
Experiences show that Public money, spent for supporting credit guarantees
systems, is a very efficient instrument and has a much higher multiplying effect than
other instruments. One Euro form the European Investment Funds can stimulate 30
Euro investments in SMEs (for venture capital funds the rela