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

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Monetary and Capital Markets Department.

Contributor:

International Monetary Fund.

Series:

IMF Staff Country Reports; Country Report ; No. 2013/348

IMF Staff Country Reports

Language:

English

Subjects (All):

Consumer credit--Italy.

Consumer credit.

Finance, Personal--Italy.

Finance, Personal.

Physical Description:

1 online resource (44 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2013.

Language Note:

English

Summary:

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.

Contents:

Cover; CONTENTS; INTRODUCTION AND MAIN FINDINGS; THE ITALIAN HOUSEHOLD SECTOR; A. Household Balance Sheets; FIGURES; 1. Household Debt and Wealth; B. The Housing Market; 2. The Housing Market; C. Financial Linkages; 3. Households' Financial Conditions; BOXES; 1. Support Measures for Low-Income and Distressed Households; D. Sensitivity Analysis; TABLES; 1. Household Debt Burden (2010); 4. Italian Household: Baseline Debt Vulnerability; 2. Sensitivity Analysis of Indebted Households; 5. Italian Household: Sensitivity Analysis; THE ITALIAN NON-FINANCIAL SECTOR

A. Non-Financial Corporate Balance SheetsB. Financial Linkages; 6. Corporate Leverage, Funding Sources, and Profitability; 2. Measures to Support SME Financing; 7. Firms' Financial Conditions; C. Insolvency and Debt Restructuring; 3. The Legal Debt Restructuring Framework for Firms; D. Sensitivity Analysis; 3. Firms' Ratio of Interest Expense to Gross Operating Income; 4. Ratio of Interest Expense to Gross Operating Profits by Firm Size (2011); 8. The Financial Situation of Italian Firms; 5. Ratio of Interest Expense to Gross Operating Profits by Firm Size (2011)

E. Contingent Claims Analysis9. Sensitivity Analysis for Italian Firms; 10. Contingent Claim Analysis for the Corporate Sector; CONCLUDING REMARKS; REFERENCES

Notes:

Description based upon print version of record.

Description based on online resource; title from PDF title page (ebrary, viewed January 19, 2014).

ISBN:

9781475532265

1475532261

9781475567007

1475567006

9781475567144

1475567146