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Mutual Guarantee Institutions (MGIs) and small business credit during the crisis


  • Paolo Emilio Mistrulli

    () (Banca d'Italia)

  • Valerio Vacca

    () (Banca d'Italia)

  • Gennaro Corbisiero

    () (Banca d'Italia)

  • Silvia del Prete

    () (Banca d'Italia)

  • Luciano Esposito

    () (Banca d'Italia)

  • Marco Gallo

    () (Banca d'Italia)

  • Mariano Graziano

    () (Banca d'Italia)

  • Maurizio Lozzi

    () (Banca d'Italia)

  • Vincenzo Maffione

    () (Banca d'Italia)

  • Daniele Marangoni

    () (Banca d'Italia)

  • Andrea Migliardi

    () (Banca d'Italia)

  • Alessandro Tosoni

    () (Banca d'Italia)


The recent economic and financial crisis has drawn attention to how mutual guarantee institutions (MGIs) facilitate small and medium enterprises in accessing bank financing. The aim of this paper is twofold. First, we describe the structural features of the Italian market for mutual guarantees and its significance for small business credit. To this end, we use extensive databases (the Central Credit Register and the Central Balance Sheet Register) as well as specific surveys, which allow us to fill information gaps about this industry and to quantify regional diversity. Second, we investigate whether MGIs� support to small firms continued to be effective in 2008-09, when credit constraints to Italian firms peaked. We find that MGIs played a role in avoiding a break-up in credit flows to affiliated firms, which also benefited from a lower cost of credit. However, this came at the cost of a deterioration in credit quality, which was more intense for customers with guarantees from MGIs.

Suggested Citation

  • Paolo Emilio Mistrulli & Valerio Vacca & Gennaro Corbisiero & Silvia del Prete & Luciano Esposito & Marco Gallo & Mariano Graziano & Maurizio Lozzi & Vincenzo Maffione & Daniele Marangoni & Andrea Mig, 2011. "Mutual Guarantee Institutions (MGIs) and small business credit during the crisis," Questioni di Economia e Finanza (Occasional Papers) 105, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:opques:qef_105_11

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    References listed on IDEAS

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    Cited by:

    1. D'Ignazio, Alessio & Menon, Carlo, 2012. "The causal effect of credit guarantees for SMEs: evidence from Italy," LSE Research Online Documents on Economics 58555, London School of Economics and Political Science, LSE Library.
    2. Edda Zoli, 2013. "Italian Sovereign Spreads; Their Determinants and Pass-through to Bank Funding Costs and Lending Conditions," IMF Working Papers 13/84, International Monetary Fund.
    3. Paolo Emilio Mistrulli & Valerio Vacca, 2015. "Social capital and the cost of credit: evidence from a crisis," Temi di discussione (Economic working papers) 1009, Bank of Italy, Economic Research and International Relations Area.
    4. Alessandra Proto & Lucia Cusmano & Neil MacCallum & Ricardo Pinto & Paolo Rosso, 2012. "Boosting Local Entrepreneurship and Enterprise Creation in Lombardy Region," OECD Local Economic and Employment Development (LEED) Working Papers 2012/20, OECD Publishing.

    More about this item


    microfinance; peer monitoring; small business finance;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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