Lending to Small and Medium-Sized Enterprises by Russian Banks: An Analysis of Financial, Macroeconomic, and Institutional Determinants

The article is devoted to an empirical analysis of factors associated with the volume of lending to small and medium-sized enterprises (SMEs) in the Russian banking sector. The empirical analysis is based on panel data from 30 Russian banks over the period 2003–2023. The methodological framework is based on panel regression analysis using the pooled OLS model with Driscoll–Kraay standard error correction. The study identifies significant financial, macroeconomic, and institutional determinants. The results show that bank financial characteristics, including capital liquidity, interest income, and return on equity, are positively associated with the volume of SME lending. The findings of the study can be used in the development of measures to stimulate bank lending to SMEs, in assessing the stability of loan portfolios, and in developing bank strategies for working with this segment.