The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Italy: Financing gap widens

Lack of SME demand for funding might have been exaggerated. But many of those that seek funds might be risky prospects.

Rating agency Fitch greeted the start of 2014 in the now traditional manner, by putting out a negative outlook on large Italian banks for the third consecutive year, citing their continued vulnerability to a fragile domestic economy whose recovery is likely to be slower and weaker than the eurozone average.

Fitch claims: "The main risk for asset quality will come from SME exposures because Italy’s SME sector is the largest in the EU and these businesses have been particularly susceptible in the prolonged recession. Corporate exposures are also likely to see further credit weakening. Manufacturing, real estate and construction remain the most volatile."

It is not a promising backdrop against which to discuss the prospects for improving the flow of funding to the country’s SMEs.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree