Abstract:
The gradual transition from small, local banks to larger banking groups has transformed the Italian banking landscape over the past few years. These structural shifts in the banking system are driving substantial changes on the relationships with corporate clients and credit approval processes.
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> A qualitative research based on four interviews with credit managers has been conducted to investigate current strategies and credit policies adopted by the main banking groups operating in the Veneto region. Findings revealed that despite having different rating systems, quantitative criteria, such as balance sheets, are still dominant in determining the corporate rating and assessing the creditworthiness of the corporate clients. Nevertheless, interviewees agreed on the increasing importance of certain qualitative criteria. Particularly, the management’s reliability and expertise, state of the industry in which they operate and future plans were amongst the common themes that emerged. In the corporate lending process, credit approval decisions are made by different people based on the credit amount and the company’s risk profile
