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...

In Italy the use of bond covenants is restrained by the predominance of SMEs, the significant role of relationship banking, the high costs related to public placements, the lack of investors‘ financial culture, the low amount of loans normally requested by each firm and the lack of liquidity...

Financial crisis has highlighted the responsibilities of rating agencies in the evaluation of some assets and in the delay in reacting to deteriorating market conditions. In Europe, this experience has made urgent to adapt the rules and fill a real law gap, with the adoption of a binding...

This paper aims to stress the importance of market liquidity for the stability of the financial system, emphasizing the pivotal role played by liquidity risk in the development of the current financial crisis, pointing out the flaws of regulation and supervision and stressing the need for their...

The consequences of the crisis on private equity and venture capital have spurred new forms of SMEs financing, based on partnership between public and private sectors. Internationally, the two sectors cooperate intensively through the fund of funds instruments. In Italy, a new investment fund...

In the euro Area, credit intermediation has a dominant role in the financing of businesses. As banks, we have great responsibilities, in order to identify the actions that are still to be taken to strengthen corporate equity. Among the possible measures to implement: the creation of incentives...

The banking market changes, the globalization of trade relations, the territorial location, the differences in interest rates, the informative asymmetries are some of the aspects that explain the credit rationing phenomenon.Among these the firm dimension plays a crucial role.Theories and some...

Risk management, its prospects and improvements are analyzed in the experience of a large Italian banking group. In line with the basic principles of prudential supervision, risk management is aimed not only to identify and to measure risks, but it realizes a process involving objectives and...

The literature that examines target prices issued by equity research analysts is vast, and the role of the analytical process and valuation model used to determine target prices has received growing attention by scholars. However, the specific evidence that indicates how professional analysts...

A better understanding of the information provided by credit ratings and their proper use allow more transparent and effective communication to investors and a better risks’ diversification. In this way ratings will be able to play a more effective predictive role