Liquidity is an important indicator of the state of health of firms. It is, also, a measure of early warning of a possible forthcoming company default. During the global crisis Italian enterprises suffer from a decrease of liquidity index. It is important to analyze this phenomenon from the...

This paper explores an innovative solution to exit from the European debt crisis exploded in 2010.The proposal is based on the securitization of sovereign debts and the creation of a jointly responsibility bond among European countries, the Eurobond, with the surer tranches of their sovereign...

The Italian financial system is still largely relying on bank loans to small and medium enterprises. In order to develop wider equity and bond markets, it is necessary to create incentives to strengthen the role of the capital markets, starting from mini-bonds issuing and loan securitization

Do rating models embody correctly the impact of macroeconomic variables on debtors’ solvency, determining a lag in downgrading? In pre-crisis periods, when interest rates increases are recorded as well as decreases in real growth rates, rating assessments fail to register risk increases in...

The Basel Agreements, designed to pursue financial stability, have been instead a cause of instability, revealing fundamental analytical and operational weaknesses. The idea to define a constant capital ratio through complex statistical models implies serious dangers. A radical change is...

This paper analyzes the determinants of credit to medium-sized enterprises before and during the crisis in Italy. While the bank-enterprise relationship seems to be crucial in the granting of credit before the crisis of 2007, during the crisis the results show a greater virtuosity of firms...

Supervisory fragmentation is a cause of systemic risk, as cooperation amongst national authorities is bound to fail in crisis events. The situation will be different under the Banking Union when the Single Supervisory Mechanism is in place even if it shows some weaknesses: the Ssm includes...

Turbulence and global economy’s fragility are increasing the propagation of stresses and traumas in interconnected systems. The Too-big-Too-Fail concept, however, is now becoming less significant and a new idea – Too-Complex-To- Survive – is gaining popularity. Since excessive complexity...

The reorganization of branch networks recently undertaken by Italian banking groups has led many subsidiary banks to operate in territories where the parent company is not present through own branches. The delegation to physically monitor the local environment can lead to an amplified credit...

The sovereign debt crisis, which hit Italy hard, affected first banks’ liquidity and secondly the cost and volumes of funding and loans. Italian banks are now facing the effects of the double-dip recession, which has significantly weakened businesses and households, their key customer...