The guarantee system in Italy

The aim of this chapter is to provide a close observation of the mutual guarantee system for SMEs in Italy. The great number of entities all over the country and the few rules have been until now (2008) both the strength and weakness of the Italian system. However, pressure from Basel 2 has been reflected on the banking system and has created a stir among the confidi, imposing a fundamental re-organization. Thus, this chapter will examine the structural and operational features of the Italian mutual guarantee system and will try to outline the main tendencies of development at the time of writing .