PUBLIC CREDIT GUARANTEES AND BANKING SYSTEM: THE ITALIAN CASE DURING COVID-19 EMERGENCY
This paper presents an in-depth examination of the impact of public support to small and medium Italian enterprises during the COVID-19 pandemic. The country’s banking system was entrusted a key role in implementing extraordinary measures of financial support, such as moratoria and public guarantees...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
World Scientific Publishing
2024-12-01
|
| Series: | Journal of Financial Management, Markets and Institutions |
| Subjects: | |
| Online Access: | https://www.worldscientific.com/doi/10.1142/S2282717X2450004X |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832589648045539328 |
|---|---|
| author | ALBERTO BANFI ALBERTO MARCHESI FRANCESCA PAMPURINI |
| author_facet | ALBERTO BANFI ALBERTO MARCHESI FRANCESCA PAMPURINI |
| author_sort | ALBERTO BANFI |
| collection | DOAJ |
| description | This paper presents an in-depth examination of the impact of public support to small and medium Italian enterprises during the COVID-19 pandemic. The country’s banking system was entrusted a key role in implementing extraordinary measures of financial support, such as moratoria and public guarantees. This support prevented the sudden drop in revenues and cash flows — caused by the pandemic and the related severe restrictive measures adopted by the Italian Government — from compromising the liquidity and solvency of a huge number of firms, thus preventing the occurrence of a chain of insolvencies, which would have seriously deteriorated Italian economy. To perform these tasks, Italian banks had to cope with commitments which severely tested their organizational structure, due to a large number of operations and the complexity and urgency these tasks entailed, especially in the first months of the emergency period. The study, in a five-year perspective, analyses — in terms of intensity and pervasiveness — the set of such initiatives, both at the entire Italian banking system level and at the specific cooperative banks level, the latter characterized by greater proximity to potentially more fragile customers. The aim of this work is to verify whether the effectiveness of the Italian banking system in this key role of accomplishing the transmission of economic policy decisions, aimed at promoting and sustaining real economy during a particularly difficult period, can be confirmed. |
| format | Article |
| id | doaj-art-9d4d58d64a8b46bbba65e0c3ca583b92 |
| institution | Kabale University |
| issn | 2282-717X |
| language | English |
| publishDate | 2024-12-01 |
| publisher | World Scientific Publishing |
| record_format | Article |
| series | Journal of Financial Management, Markets and Institutions |
| spelling | doaj-art-9d4d58d64a8b46bbba65e0c3ca583b922025-01-24T09:32:04ZengWorld Scientific PublishingJournal of Financial Management, Markets and Institutions2282-717X2024-12-01120210.1142/S2282717X2450004XPUBLIC CREDIT GUARANTEES AND BANKING SYSTEM: THE ITALIAN CASE DURING COVID-19 EMERGENCYALBERTO BANFI0ALBERTO MARCHESI1FRANCESCA PAMPURINI2Catholic University of the Sacred Heart of Milan, Department of Economics and Business Management Sciences, Largo Gemelli 1, 20123 Milan, ItalyCatholic University of the Sacred Heart of Milan, Department of Economics and Business Management Sciences, Largo Gemelli 1, 20123 Milan, ItalyCatholic University of the Sacred Heart of Milan, Department of Economics and Business Management Sciences, Largo Gemelli 1, 20123 Milan, ItalyThis paper presents an in-depth examination of the impact of public support to small and medium Italian enterprises during the COVID-19 pandemic. The country’s banking system was entrusted a key role in implementing extraordinary measures of financial support, such as moratoria and public guarantees. This support prevented the sudden drop in revenues and cash flows — caused by the pandemic and the related severe restrictive measures adopted by the Italian Government — from compromising the liquidity and solvency of a huge number of firms, thus preventing the occurrence of a chain of insolvencies, which would have seriously deteriorated Italian economy. To perform these tasks, Italian banks had to cope with commitments which severely tested their organizational structure, due to a large number of operations and the complexity and urgency these tasks entailed, especially in the first months of the emergency period. The study, in a five-year perspective, analyses — in terms of intensity and pervasiveness — the set of such initiatives, both at the entire Italian banking system level and at the specific cooperative banks level, the latter characterized by greater proximity to potentially more fragile customers. The aim of this work is to verify whether the effectiveness of the Italian banking system in this key role of accomplishing the transmission of economic policy decisions, aimed at promoting and sustaining real economy during a particularly difficult period, can be confirmed.https://www.worldscientific.com/doi/10.1142/S2282717X2450004XBanking system financial supportpublic guaranteesCOVID-19 emergencysmall and medium-sized enterprises (SMEs)bank proximity |
| spellingShingle | ALBERTO BANFI ALBERTO MARCHESI FRANCESCA PAMPURINI PUBLIC CREDIT GUARANTEES AND BANKING SYSTEM: THE ITALIAN CASE DURING COVID-19 EMERGENCY Journal of Financial Management, Markets and Institutions Banking system financial support public guarantees COVID-19 emergency small and medium-sized enterprises (SMEs) bank proximity |
| title | PUBLIC CREDIT GUARANTEES AND BANKING SYSTEM: THE ITALIAN CASE DURING COVID-19 EMERGENCY |
| title_full | PUBLIC CREDIT GUARANTEES AND BANKING SYSTEM: THE ITALIAN CASE DURING COVID-19 EMERGENCY |
| title_fullStr | PUBLIC CREDIT GUARANTEES AND BANKING SYSTEM: THE ITALIAN CASE DURING COVID-19 EMERGENCY |
| title_full_unstemmed | PUBLIC CREDIT GUARANTEES AND BANKING SYSTEM: THE ITALIAN CASE DURING COVID-19 EMERGENCY |
| title_short | PUBLIC CREDIT GUARANTEES AND BANKING SYSTEM: THE ITALIAN CASE DURING COVID-19 EMERGENCY |
| title_sort | public credit guarantees and banking system the italian case during covid 19 emergency |
| topic | Banking system financial support public guarantees COVID-19 emergency small and medium-sized enterprises (SMEs) bank proximity |
| url | https://www.worldscientific.com/doi/10.1142/S2282717X2450004X |
| work_keys_str_mv | AT albertobanfi publiccreditguaranteesandbankingsystemtheitaliancaseduringcovid19emergency AT albertomarchesi publiccreditguaranteesandbankingsystemtheitaliancaseduringcovid19emergency AT francescapampurini publiccreditguaranteesandbankingsystemtheitaliancaseduringcovid19emergency |