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Italy: Technical Note on the Financial Situation of Italian Households and Non-Financial Corporations and Risks to the Banking System

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  • International Monetary Fund

Abstract

This Technical Note examines the financial situation of Italian households and nonfinancial corporations and risks to the banking system. The credit risk from Italian households is mitigated by their considerable net wealth. Income has declined during the crisis, leading to tighter financial conditions for households, especially for young and low-income groups, but low indebtedness, high levels of assets, and declining interest rates have protected households from widespread debt payment difficulties. The financial situation of nonfinancial corporations, in particular small and medium-sized enterprises, is fragile, as evidenced by already high loan default rates. Continued strong policy action will be important to mitigate the impact of these vulnerabilities, especially for firms.

Suggested Citation

  • International Monetary Fund, 2013. "Italy: Technical Note on the Financial Situation of Italian Households and Non-Financial Corporations and Risks to the Banking System," IMF Staff Country Reports 2013/348, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2013/348
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    Cited by:

    1. Paolo Surico & Riccardo Trezzi, 2015. "Austerity and Households Expenditure," 2015 Meeting Papers 513, Society for Economic Dynamics.
    2. Claire Giordano & Marco Marinucci & Andrea Silvestrini, 2016. "Investment and investment financing in Italy: some evidence at the macro level," Questioni di Economia e Finanza (Occasional Papers) 307, Bank of Italy, Economic Research and International Relations Area.

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