The Determinants of the Confidi Delinquency Rate

This study is focused on the Italian confidi, the financial institutions placed in an intermediate position between lenders and borrowers, because they offer guarantees care of banks to the associated SMEs. During the last years some of the most important guarantee institutions failed, because of bad and doubtful credits. The main aim of the research is to determine the responsible factors about their delinquency rate. The analysis is realized on 99 confidi during 2006-2015 (10 years). The data about 2016 are not usable, because the Italian confidi are living a change in the accountings standards, making it impossible a comparison between the balance sheets. The regression model show that the difficulties in credit collections essentially depend to the economic crisis and to the bad management of the organizations. We cannot also forget the practical and social implications of the study. The forecasting of the riskier confidi will help the Italian policy makers both in the individuation of correct instruments of rescue and in finding a solution for another important problem: the unemployment.