Mutual Guarantee Institutions (MGIs) and small business credit during the crisis

Paolo Emilio Mistrulli, Valerio Vacca, Gennaro Corbisiero (), Silvia del Prete (), Luciano Esposito (), Marco Gallo (), Mariano Graziano (), Maurizio Lozzi (), Vincenzo Maffione (), Daniele Marangoni (), Andrea Migliardi () and Alessandro Tosoni ()
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Gennaro Corbisiero: Banca d'Italia
Silvia del Prete: Banca d'Italia
Luciano Esposito: Banca d'Italia
Marco Gallo: Banca d'Italia
Mariano Graziano: Banca d'Italia
Maurizio Lozzi: Banca d'Italia
Vincenzo Maffione: Banca d'Italia
Daniele Marangoni: Banca d'Italia
Andrea Migliardi: Banca d'Italia
Alessandro Tosoni: Banca d'Italia

No 105, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The recent economic and financial crisis has drawn attention to how mutual guarantee institutions (MGIs) facilitate small and medium enterprises in accessing bank financing. The aim of this paper is twofold. First, we describe the structural features of the Italian market for mutual guarantees and its significance for small business credit. To this end, we use extensive databases (the Central Credit Register and the Central Balance Sheet Register) as well as specific surveys, which allow us to fill information gaps about this industry and to quantify regional diversity. Second, we investigate whether MGIs� support to small firms continued to be effective in 2008-09, when credit constraints to Italian firms peaked. We find that MGIs played a role in avoiding a break-up in credit flows to affiliated firms, which also benefited from a lower cost of credit. However, this came at the cost of a deterioration in credit quality, which was more intense for customers with guarantees from MGIs.

Keywords: microfinance; peer monitoring; small business finance (search for similar items in EconPapers)
JEL-codes: D82 G21 G30 (search for similar items in EconPapers)
Date: 2011-10
New Economics Papers: this item is included in nep-ban and nep-ent
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_105_11

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