Credit constraints for SMEs in the Italian Mezzogiorno: which role for Mutual Loan-Guarantee Consortia?

F. Amaturo, Luca Giordano () and Carmelo Petraglia

Rivista economica del Mezzogiorno, 2009, issue 1-2, 27-70

Abstract: This paper focuses on the perspective role of Mutual Loan-Guarantee Consortia (MLGC) in mitigating credit constraints for SMEs located in the Italian Mezzogiorno. First, we argue how the functioning of MLGC fits into the theory of bank-firm relationships, also referring to the scarce empirical evidence on the issue. Second, we evaluate the weakness - in terms of size, volume of activity, patrimonial requirements and guaranteed loans - of the Southern MLGC system. We then provide insights on the impact of the novelties introduced by the New Basel Capital Accord (Basel II) on MLGC's activity. Finally, we conclude for the need of public support to MLGC in the Mezzogiorno in order to enhance their function of facilitating the matching of demand and supply in the credit market.

Keywords: Mutual Loan-Guarantee Consortia; credit rationing; Italian Mezzogiorno; bank-firm relationships (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.rivisteweb.it/download/article/10.1432/29873 (application/pdf)
https://www.rivisteweb.it/doi/10.1432/29873 (text/html)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mul:jqyfkm:doi:10.1432/29873:y:2009:i:1-2:p:27-70

Access Statistics for this article

Rivista economica del Mezzogiorno is currently edited by Riccardo Padovani

More articles in Rivista economica del Mezzogiorno from Società editrice il Mulino
Bibliographic data for series maintained by ().