SME Lending in EU Faces €39B Shortfall, Onchain Opportunity Emerges
EU SME lending dropped 40–50% after Basel III and another 12% since 2023, creating a €39B annual funding gap filled by costly floating-rate debt. The shortfall opens a potential onchain opportunity for retail-accessible SME lending.
Small and medium-sized enterprises (SMEs) are the backbone of Europe, but traditional banks frequently reject their loan applications. According to a recent report, SME lending in the EU fell by 40–50% after Basel III tightened capital rules and dropped another 12% since 2023.
The resulting funding shortfall is estimated at €39 billion annually. Non-bank lenders have stepped in with floating-rate debt, which penalizes SMEs when interest rates rise. This environment creates a real opportunity for retail-accessible SME lending built on blockchain rails.
For more details, see the full report: SME Lending Onchain.
Source: Cointelegraph