Bank lending in Italy: A view on regulatory and market innovation

Abstract

In this chapter, I summarize the main strategic, organizational, and competitive challenges of the Italian banking industry, with reference to the bank lending function and business models. In Italy, banks play a significant role in financing firms and promoting innovation. Then, I will analyze the importance of relationship banking and the various roles it plays for large and small banks in determining economic development. Finally, I will briefly investigate the impact of prudential regulation on bank lending.