CEU Electronic Theses and Dissertations, 2025
| Author | Soter, Csenge |
|---|---|
| Title | The Impact of Anti-Money Laundering Regulations on Small and Medium-Sized Enterprises' Access to Credit: A Case Study of the UK |
| Summary | This thesis investigates the impact of the UK’s 2017 anti-money laundering regulations (AMLD4) on the credit-seeking behavior of small- and medium-sized enterprises (SMEs). Using firm-level data from the UK SME Finance Monitor (2014-2019), the study employs a difference-in-differences (DiD) approach with both dynamic and pooled specifications to compare loan and commercial mortgage application behavior between micro/small and medium-sized firms before and after the policy implementation. Contrary to the initial hypothesis and existing literature, results suggest that micro and small firms were slightly more likely to apply for loans after AMLD4, while medium-sized firms’ applications relatively declined. However, application rates decreased across all firm sizes over the observed years, indicating a broader downward trend in SME credit demand. The study acknowledges the potential influence of Brexit, AMLD5, and macroeconomic uncertainty, which were excluded from the empirical analysis but are considered in the discussion. Findings reveal that while AMLD4 may not have disproportionately discouraged smaller firms, overall SME loan application behavior is extremely complex, and influenced by regulatory, economic, and behavioral factors. The thesis also highlights methodological limitations, such as survey gaps and sample imbalance, and concludes with policy recommendations to support SME access to finance while maintaining effective AML oversight. |
| Supervisor | Lee, Tomy |
| Department | Undergraduate Studies BA |
| Full text | https://www.etd.ceu.edu/2025/soter_csenge.pdf |
Visit the CEU Library.
© 2007-2025, Central European University