Thursday, 01 October, 2020

Competitiveness: loan comes from insurance companies


“Competitiveness”: loan comes from insurance companies


Still in draft, but almost ready for signature. This is why the news, of the very important ones for the business loan world, is about to be finalized. If the operation of the “Competitiveness” will be officially defined, Italian companies will find themselves in a liberalized loan market , where they can apply for loans to new subjects over banks: insurance companies, loan funds and securitization companies.
With this measure, the government intends to release at least 20 billion euros of loans.

The operation, which has been discussed for a long time and which involves an application that is certainly not simple, would be essential for companies to definitively take the exit tunnel from the loan Crunch . As explained in an interview with account Fabrizio Pagani , head of the technical secretariat of the Ministry of Economy: ” We need to make a cultural leap: the goal is to reverse a trend that sees the saving only fundamentally finance the corporate Italy, preferring instead foreign instruments or more traditional channels such as government bonds “.

The goal is to bring the enormous amount of liquidity that flows into the system into business , but which has not yet found the optimal investment conditions. In fact, the direct granting of loans to companies is currently precluded at Fondi e assicurazioni.

But what role will the banks have? And who will deal with defining the constraints if not the Bank of Italy? Mara Monti, on today’s account , explains the possible functioning and points of attention of what is a long-awaited change:

the bank centrality in identifying the companies to be financed is a pivotal point on which the technicians will be expected to define secondary legislation. The decree provides that it is up to banks to select the subject to be financed, while maintaining direct involvement in the transaction. According to the prevailing interpretation among the insiders, the role of the bank in the provision of new loan could be incardinated at the time of the organization of the transaction: the bank structure the deal that is financed by other investors, insurances or funds. Or the bank maintains a significant economic interest in the transaction by participating in the loan and taking on part of the risk.

The internal control system and risk management will continue to be firmly in the hands of supervisors, thus avoiding the proliferation of forms of wild loan. If the Bank of Italy does not fail to have a supervisory role on the subjects financed through the control over the Central loan , for the assurances it will be up to the Ivass to establish the conditions and operating limits for the granting of loans …


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