New Perspectives on the Bank-Firm Relationship (eBook)

Paola Ferretti, PhD, is an Assistant Professor in Financial Markets and Institutions at the University of Pisa, Italy. Her current research focuses on Basel II and Basel III; credit risk management; business models; profitability; operational risk management; compliance risk; corporate social responsibility; social media; and corporate governance. She is the author of many publications in these subject areas.

Dedication 6
Contents 7
List of Tables 10
1: Introduction 11
2: The Bank-Firm Relationship: How Did It Change with the Financial Crisis? 16
2.1 Introduction 16
2.2 The Bank-Firm Relationship: General Remarks 17
2.2.1 Background Literature 22
2.3 Bank Lending During the Financial Crisis 26
2.3.1 An Overview of the Trend of Credit: Demand Versus Supply Factors 27
2.4 Bank Constraints on Lending: Capital, Liquidity and Profitability 35
2.5 Conclusions 46
References 47
3: Credit Risk Assessment: The Internal Rating Systems 51
3.1 Introduction 51
3.2 Regulatory Capital Adequacy Framework: From Basel I to Basel III 52
3.3 Capital Requirements for Credit Risk 56
3.3.1 Focus on the Internal Ratings Based Approach 63
3.4 Internal Ratings Based Approach: Operational Features 69
3.5 Conclusions 82
References 83
4: Credit Guarantees: The Role in Bank Lending 86
4.1 Introduction 86
4.2 Credit Guarantees: Main Findings from the Literature Review 88
4.3 The Regulatory Framework 90
4.4 Mutual Guarantee Institutions: Focus on the Italian System 97
4.4.1 Origins and Operational Scope 99
4.4.2 The On-going Reform Process 102
4.4.3 New Structures and Crisis: What Are the Current Challenges? 116
4.5 The Italian Guarantee Fund for Small and Medium Enterprises: Operational Aspects 121
4.5.1 Crisis Related Considerations 124
4.6 Conclusions 128
References 130
5: Banks, Firms and Financial Markets 133
5.1 Introduction 133
5.2 Beyond Credit: Rationale and Actions 134
5.3 Towards New Equilibria 140
5.3.1 Initiatives on a European Scale: The Capital Markets Union 141
5.3.2 Crowd-Funding and Private Placement 147
5.3.3 An Overview of Measures Taken in Italy 151
5.3.4 Focus on the Role of Insurance Companies 156
5.4 Conclusions 161
References 163
6: Is Banking Business Changing? Some Evidence 165
6.1 Introduction 165
6.2 An Overview on an International Scale 166
6.3 Credit Risk Management in Italian Banks 169
6.4 Examples of Business Segments Focusing on Corporate Customers 180
6.5 Conclusions 184
References 185
Index 186