Corporate vulnerabilities as reported by firms in the SAFE

Carmela Attolini, Annalisa Ferrando and Judit Rariga

Economic Bulletin Boxes, 2024, vol. 1

Abstract: Historically, the financial vulnerability indicator based on the Survey on the Access to Finance of Enterprises (SAFE) evolves broadly in line with bankruptcies and other insolvency measures for firms in the euro area. The current rise in vulnerabilities identified in the SAFE is driven mostly by firms in industry, construction and trade and by large firms rather than by small and medium-sized enterprises (SMEs). Increasing interest expenses are important in explaining the likelihood of firms becoming vulnerable. Balance sheet data on firms in the SAFE confirm that corporate vulnerabilities have implications for their investment rate and employment growth. This provides further insights into the transmission of monetary policy to economic activity. JEL Classification: D22, G33, E52

Keywords: firm survey data; investment; Vulnerability (search for similar items in EconPapers)
Date: 2024-02
Note: 235236
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