Securitization of (bad) loans to Italian SMES: The role of the public guarantee

This study investigates the main factors driving evolution of securitization loans to Italian small and medium-sized enterprises (SMEs). The value increased in last two years, even though it has not been used as collateral for central banks. disposal non-performing (NPLs) may have rather triggered by increasing attention international institutions such an issue, within general purpose financial stability. this paper is interpret a phenomenon focusing on banks restricting analysis case securitizations backed with interesting result that emerges, supported econometrically tested empirical evidence, given orientation institutions, ECB EBA, reacting incentives coming from fiscal policy authorities public guarantee loans, using reduce burden their bad balance sheets due (NPLs). It was found had positive impact SME securitization, whereas other sectors affected significantly. Such evidence suggests that, absence guarantee, stability target would at risk, effectiveness collateral-based policies recent past must be improved enhance access credit SMEs.