The Reality of Confidi: Delinquency Rate and Political Decisions

This research focuses on the Italian confidi, which are financial institutions that act as a middleman between lenders and borrowers, providing bank guarantees to the related SMEs. We’ve seen a significant decrease in the amount of confidi in recent years. The research’s main goal is to find an explanation for the phenomenon. What is the reason for the decrease in the amount of confidi? Is it determined by their rate of delinquency? Or on the policies of the Italian government? The research conducts both a quantitative and qualitative analysis to assess the responsible factors. The first is on a substantial representative body (99 confidi). The regression model reveals that credit collection problems are primarily caused by the economic downturn and poor organisational management. However, the rate of delinquency isn’t the only factor at play. The second reason is determined by the policies that govern decision-making. The most recent measures halted the development of confidi, forcing those that were not operational or did not meet regulatory criteria to shut down.

Author (s) Details

Cristina Rovera
Scuola di Management ed Economia (SME), University of Torino, Italy.

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