XI. Options to extend SME financing through central bank digital currency Laura Komlóssy – Blanka Kovács – Soma Sándor While a strong sector of small and medium-sized enterprises (SMEs) is the foundation for sustainable economic growth, these companies often face obstacles in accessing credit. In recent years, the Magyar Nemzeti Bank (MNB) has deployed several targeted instruments to support domestic SMEs’ financing with favourable conditions, and thus economic growth. This paper presents the prospective design and operational aspects of a possible form of SME-focused central bank digital currency. A low-cost and secure alternative lending channel in the form of central bank digital currency can help the SME sector, which is important for economic growth, to realise its development potential across financial cycles.
1. Relationship between the SME sector and the financial intermediary system 1.1. Smooth financing for the SME sector is fundamental economic interest As the SME sector is one of the fundamental pillars of an economy based on inclusive growth, SMEs’ access to an adequate form and volume of financing is important in all countries. The SME sector plays an important role in Hungary, both economically and socially. Currently, more than 750,000 SMEs operate in Hungary, which account for more than 99% of
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