Cœuré says there is no "magic wand" to help SMEs

The European Central Bank (ECB)'s Benoît Cœuré has said that there is no "magic wand" to help grant SMEs access to credit markets.

The ECB has taken and will continue to take appropriate measures to ensure that bank funding is not a source of financial fragmentation or an impediment to bank lending.

The ECB will provide ample liquidity as long as needed, but market participants have to continue their efforts to facilitate the transition to a less central bank-reliant, more market-based financial system.

Concerns have been raised that the ECB may attempt to reduce borrowing costs, distorting credit markets and possible creating new lending bubbles. SMEs make up the majority of businesses within the Eurozone, but lending to them can be risky.