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...

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...

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 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...

Ratings measure the counterparty risk for an issuer or an issue while Cds are a market evaluation of the same risk exposure. The market evaluation could be not aligned with the rating agencies’ judgment and the difference could be relevant. The article presents an empirical analysis on a...

In estimating the downturn Lgd, financial intermediaries have to select the economic cycle on which investigating the relationship between default rate and recovery rate. In order to obtain the validation, the methodological framework must be detailed, sustainable and applied to a statistically...

The legislative changes introduced in the Italian pre-insolvency law for corporate crisis management provide the opportunity to reconsider the question related to the bank’s responsibility in the case of restructuring agreements’ execution

The Italian corporate lending system is undergoing a legislative transformation, undoubtedly influenced by issues relating to debt restructuring plans. Banks are faced with different problems arising from loans to undercapitalized companies. Debt restructuring agreements are effective...

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...

Cooperative banking has produced, in more than a century, significant value in terms of proximity to clients and local communities. A governance reform is now necessary to solve interest conflicts and redefine the cooperative model in the present scenario