The real estate market, the supply chain and credit: the effects of the great recession

Cristina Fabrizi (), Raffaella Pico (), Luca Casolaro (), Mariano Graziano (), Elisabetta Manzoli (), Sonia Soncin (), Luciano Esposito (), Giuseppe Saporito () and Tiziana Sodano ()
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Tiziana Sodano: Bank of Italy

No 263, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The supply chain of the real estate sector accounts for one fifth of Italian GDP; its importance for the banking system is even greater: lending to this sector accounts for more than one third of total loans to the private sector. The crisis in the construction and real estate sector started even before the global financial crisis of 2008 and hit firms in the sector and the banks that finance them. The fall in turnover and profitability has greatly increased the economic and financial vulnerability of firms, undermining their ability to repay their debt, particularly, in the case of large and highly leveraged firms. Due to the increase of loans classified as bad debts, the banking system has tightened conditions on new loans to this sector

Keywords: Real estate cycle; trades; quotes; construction companies and real estate services; bank loans (search for similar items in EconPapers)
JEL-codes: E01 G21 L74 L85 R21 R31 (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-cfn, nep-eec and nep-mac
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