The paper investigates how Basel II has influenced the regulatory capital requirements imposed to the SME according to their classification and to their internal approach. Also, it sheds light on the Basel II’s impact on the competitiveness of the banks exhibited as well as the procyclical effects of this accord on the SME financing. Moreover, this research demonstrates the information’s transparency manifested by the Basel II between the SME and the bank. Finally, the weakness of the Basel II is highlighted versus the advantages of the Basel III especially in the emerging market economies like Egypt and Tunisia.
KeywordsSME FundingBasel IIBasel III
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