Why tighter loan rules may be hurting small businesses

Aytekin Ertan, Associate Professor of Accounting at London Business School, explains how new accounting rules designed to make banks safer and more transparent have led to reduced lending—especially to small businesses—highlighting the unintended economic consequences of well-intentioned financial regulations.

Aytekin Ertan shows how new bank accounting rules cut lending to small firms, revealing unintended effects of well-meant regulations.

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