- Daniel Bendel / Markus Demary / Michael Voigtländer ·
- IW-Report No. 28 ·
- 18 September 2017
How do higher interest rates impact companies’ financial situation?
Companies’ access to finance has an important impact on their profitability and growth prospects. Without external financing, most firms are not able to invest, which is a prerequisite for economic growth. Unlike in the US, which has a capital market-based financial system, banks are the dominant lenders for firms in the Eurozone.