The paper gives a descriptive analysis of the developments in lending to non-financial corporations in Italy since the start of the current recovery of GDP. The analysis is based on a comparison of recoveries (a total of 81) since 1980 in 13 euro-area countries and, in particular, those affecting the Italian economy alone. In addition, the paper discusses the main determinants of recent dynamics in lending, distinguishing between demand and supply factors.
Weak dynamics in lending to firms in the current recovery in Italy is in line with developments observed in cyclical upswings following long recessions and in downturns associated with banking crises. The evolution of lending reflected weak demand although supply-side constraints have also been a factor, especially for small firms.
