Analyse: This thesis contributes to the debate on what type of financial institutions to promote Eastern Europe. But while most of the existing literature focuses on large enterprises and the need to improve corporate governance, this work draws attention on small and medium enterprises and the need to improve their access to credit.

Developing a credit rationing model with collateral and heterogeneous lenders and borrowers, the thesis demonstrates that lenders endowed with an information gathering technology such as banks play a key role in the provision of credit to small and medium enterprises.

It is suggested therefore that Eastern European countries' priority should be the creation of a sound and well-performing banking system to improve credit access for small and medium enterprises, while corporate governance could be left to non-bank financial intermediaries.