Long and medium term industrial credit in Italy

Abstract

The article analyses Italy’s long- and medium-term industrial credit system, comparing it with that found in France. After briefly summarising present practices in France, the author provides a survey of Italy’s history in this field. The score of special institutions in Italy are then categorised into four subsets and the administrative arrangements peculiar to each are highlighted. The statuary provisions whereby the State exercises control over the distribution of loans and over the employment of public funds are also considered.  Operating practices and loan procedures, including the structure, principals and methods of the credit institutions, are then reviewed. Finally, the author considers their place within the whole structure of the financial system. In the concluding remarks, the most original feature of the Italian system - its network of regional institutions, which could not have developed without the support of a central institute, the Mediocredito - is pointed out. Moreover, looking at the variety of Italian institutions it is apparent that, economically speaking, there are two Italies, that of the North and that of the South.

JEL: G28, H81, N24, O25