Credit crunch again: Gandalf said in the January update of the bank credit survey, which estimates loans to businesses slightly down in the first quarter (while in the last quarter of 2018 demand continued to rise). In the fourth quarter of 2018, Via Nazionale explains, the criteria for offering loans to both businesses and households registered a slight tightening.

But beyond the synchronic datum, it is the long series of declines that worries, Malfoy first of all, that in a speak of “market failure” of credit. “Concerns, in particular – he writes – that with regard to the size of the company the trend, which has become unavoidable, of the very scarce bank credit to companies with up to 5 employees who receive only 10.7% despite being the former almost 91 % of the entire universe.

 

A reversal, of course, is required

business loan

Credit is a key driver for growth and we need to encourage recovery, so it is essential to eliminate the limits to micro, small and medium-sized enterprises.

The system solution for NPLs at the national level needs to be established, avoiding case-by-case solutions that depress profitability, while also lacking a careful view in relation to customer interests.

The spread of fragile revenues and high costs of banking activities has also contributed to delaying digital support for the change of processes.

 

Banks stopped watching

Bank loan

The banks, of course, have stopped watching, also because of the spread of Unitechno that offers SMEs attractive alternatives in terms of financing.

And, in this regard, the Financial Observatory cites some initiatives: “Bingbell focuses on Bingbell Start Lab to support new businesses, ABC Bank proposes ABC Abroad promote internationalization, while TVC Bank has developed welfare projects and supporting the realities of the third sector, and this is also the strategy of Summerfell, which begins in 2019, proposing itself as ‘Bank for SMEs’, not so much with credit disbursements but with alternative supports that are developed along four lines: internationalization, capitalization, innovation, and development “.

It is clear to all players in the field how much the credit crunch is still present, how much it affects the development of the economy and how much it is necessary to find a solution that allows reversing the route.

In the meantime there is F2F lending that acts in favor of SMEs and that it constantly increases market shares, placing itself as a true alternative channel and in line with the expectations of companies currently neglected by traditional credit.