Abstract
We stress the role of a more balanced financial structure for the Italian corporate sector. Three sources of funding are seen as complementary: equity, long-term debt, and bank loans. An analysis of the credit crunch shows the emergence of two phases: the first from the Lehman crash (2008) to 2010; the second from the sovereign debt crisis (2011) to today. The supply of bank credit will not recover quickly, since bank behaviour is pro-cyclical and prudential regulation will not help. Italian firms should become less dependent on banks. Specialised intermediaries should channel funds from institutional investors to the corporate sector.
<angelo.baglioni@uniattt.it>; <andrea.monticini@unicatt.it>; <giacomo.vaciago@unicatt.it>; Department of Economics and Finance.
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© 2015 Servizio Italiano Pubblicazioni Internazionali
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Baglioni, A.S., Monticini, A., Vaciago, G. (2015). After the Credit Crunch: Long-Term Finance for Economic Growth. In: Calciano, F.L., Scarano, G., Fiordelisi, F. (eds) The Restructuring of Banks and Financial Systems in the Euro Area and the Financing of SMEs. Central Issues in Contemporary Economic Theory and Policy. Palgrave Macmillan, London. https://doi.org/10.1057/9781137518736_10
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DOI: https://doi.org/10.1057/9781137518736_10
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