SME lending in the conditions of economic instability: Peculiarities and development prospects

Small and medium enterprises (SMEs) are the key to sustainable economic development and solution to a number of social issues in many countries. This is especially evident during economic crisis with the worsening of qualitative condition of individual sectors of the economy, the reducing competitiveness. The problem of financing and development of SMEs lending market is one of the most pressing in modern conditions. Lack of interest of banks in the development of credit relations with SMEs does not contribute to optimization and reduction of the cost of lending process. Successful development of SMEs requires effective public policies and favorable credit conditions to obtain sources of financing. The study analyzes the conditions and credit status of Russian SMEs in 2009-2016 period, as well as gives an assessment of its future prospects. © 2016 Savchina et al.