Rules and regulations for corporate loans to small and medium sized enterprises (SMEs) have once more been tightened by Dutch banks, De Nederlandsche Bank (DNB) has revealed.

Tougher regulations for SMEs

Research conducted during the first quarter of 2013 by the DNB has shown that more than 50 percent of Dutch banks have decided to tighten their regulations for lending to SMEs.

By comparison, only a few banks tightened their credit standards when it came to loans to large enterprises. Around 30 percent of banks in the Netherlands expect to continue this tightening, especially in regard to loans for SMEs.

Worries surrounding economic climate

Two-thirds of banks in the Netherlands reported that they were increasingly aware of the risk of investing in SMEs, mainly because of the economic climate in which the businesses were venturing.

Just last month it was revealed that unemployment in the Netherlands had risen to 8,1 percent of the total working-age population, and in response the banks seem to be tightening their belts.

Demand for loans also down

Information provided by the banks themselves has shown that demand for corporate loans has declined in both SMEs and larger enterprises, and one third of the Dutch banks expect this to continue into the second quarter of 2013.

Source: De Nederlandsche Bank