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Estimating the size of the loan sharking market in Italy

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  • Attilio Scaglione

Abstract

In the current economic crisis, the risk is so high that entrepreneurs, commercial activities and even families may turn to the illegal market to obtain liquidity. This article proposes an estimate of the size of the usury credit market in Italy. The estimate is based on the assumption, provided by Guiso-super-1, that before coming to a moneylender the borrower seeks to obtain credit through official channels. The results of our estimates confirm the seriousness of the problem, but provide much lower data than those reported periodically by the media. It is estimated that 372,000 economic activities may have been potentially involved in the usury market in 2012. The volume of loans disbursed in the illegal market would have amounted to €18 billion. The profits of loan sharks would be between a minimum of €3 billion and a maximum of about €6.1 billion.

Suggested Citation

  • Attilio Scaglione, 2014. "Estimating the size of the loan sharking market in Italy," Global Crime, Taylor & Francis Journals, vol. 15(1-2), pages 77-92, April.
    • Handle: RePEc:taf:fglcxx:v:15:y:2014:i:1-2:p:77-92
    DOI: 10.1080/17440572.2014.886035
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    Cited by:

    1. Raffaella Barone, 2018. "The Italian CCB Reform and Usury Credit Risk: A Quantitative Analysis," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(3), pages 463-496, November.
    2. Raffaella Barone & Donato Masciandaro, 2019. "Cryptocurrency or usury? Crime and alternative money laundering techniques," European Journal of Law and Economics, Springer, vol. 47(2), pages 233-254, April.

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