The Italian Banking System, Consumer Credit and the Financial Crisis: Economic Perspectives

Italian households’ use of credit has increased steadily over the past twenty years, with a break in this trend coinciding with the financial crisis and the subsequent recessions on the Italian market. The crisis generated serious difficulties on both the demand and the supply sides, but at the same time it provided a major stimulus for the re-organisation and improvement of the market, which are now benefiting both financial intermediaries and banks, and households themselves. The chapter examines the evolution of the household credit market, focusing its attention on changes in the structure of the supply side to highlight the way in which these changes have improved the quality and efficiency of the credit provided. The first section analyses the trend in household credit in Italy, with regard to both housing loans and consumer credit. The second section examines the evolution in the structure of the supply side, while the third section highlights the effects of the financial crisis, changes in the regulatory framework and the restructuring of the supply system on household credit.