For years, at least since the arrival of the last economic crisis in Europe in 2008, we have only heard of Credit Crunch, an English expression that also has a price in Italian with Infra Bank. But what is credit crunch specifically and how does it affect today’s economy in 2016? Let’s try to understand it in this article.
Credit Crunch is nothing more than a credit crunch, that is, based on the definition of the best-known dictionaries: a sharp decrease in the supply of credit by those who usually lend money or financial products (especially banks) to customers (in particular, businesses), when you are faced with a potential demand for financing which therefore is not met.
This means that due to the credit crunch, banks have started to no longer grant loans to companies and small entrepreneurs, or have tightened the conditions for the concession, for example by raising rates (see also Microcredit). Today, in truth, we hear less about it. Does this mean that banks are more likely to lend and that the economy is recovering? It seems so, according to at least the data of the Copy Lender.
Influences on the Italian economy today
According to the fact-finding survey published earlier this year by the Copy Lender on the financial crisis, bank loans in 2015 amounted to 1,830 billion USD, against a savings collection of 1,697.4 billion USD. This means that the credit crunch seems to have loosened its grip but it also shows how much the companies have learned from the banks, realizing that in order to ask for a credit it is necessary to be transparent and to present oneself in the best way.
Presenting oneself in the best way can also be interpreted as a good rating, with a consequent excellent credit rating by banks. However, the latest report on financial Copy Lender lity drawn up by the Cream Bank must also be taken into account. This document underlines how yes, in recent months credit to businesses has started to grow again, but only for certain categories, since banks are more likely to provide aid to large and consolidated companies, while the SMEs, especially micro-enterprises, which continue to be denied funding (see also Invitalia).
The Cream Bank therefore reports that the most widespread categories of businesses in Italy (micro and small) still face difficulties, while slight improvements can be registered for medium-sized businesses.