Corporate vulnerabilities as reported by firms in the SAFE – European Central Bank

Prepared by Carmela Attolini, Annalisa Ferrando and Judit Rariga

Published as part of the ECB Economic Bulletin, Issue 1/2024.

This box analyses corporate vulnerabilities as derived from firm-level replies to the Survey on the Access to Finance of Enterprises (SAFE). A firm is considered vulnerable if it simultaneously reports lower turnover, lower profits, higher interest expenses and a higher or unchanged debt-to-assets ratio over the past six months.^[1] The concept is particularly relevant when assessing the implications for the transmission of monetary policy as it provides strong signals on the financial health of firms.

The share of financially vulnerable firms in the SAFE, which is broadly in line with the dynamics in corporate ba…