Effects of Credit Risk and Banking Supervision on The Access to Credit in a Dualistic Economy: The Case of Southern Italy

Abstract

In this article the authors discuss the effects of changes in bank regulation on the behavior of banks as regards their willingness to finance companies in Italy and in Southern Italy in particular. They at first examine the evolution of the Supervisory banking model and its impact on a dualistic economy like Southern Italy; then provide a statistical evidence of the access to credit in Italy according to different areas and regions and different bank size; finally, they conclude with some policy implications about the reshaping a virtuous relationship between banks and firms in Southern Italy.