Abstract
The discussion surrounding the bank/enterprise relationship on credit risk management has been a subject of debate for the last two years. It began with the measures approved and diffused by the Basel Committee and is known as the Basel 2 Rules. The aim of this paper is to verify the coherence between tools and methods used by the banks involved in lending activities and certain (perhaps lesser known) statements of the Committee document; it is important to briefly recall the terms of the debate.
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References
J.E. Stiglitz, A. Weiss: “Credit Rationing in Markets with Imperfect Information” in The American Economic Review, V71 n° 3, 1981. On the topic see too: A.N. Berger, G.F Udell. Limes of Credit, collateral and relationship lending in small firm finance, Working Paper (S-93/17) Salomon Brothers Center for the Study of Financial Institutions, New York University; R.I. Constand, J.S. Osteryoung, D.A. Nast “Revolving asset backed lending contracts and the resolution of debt-related agency problems” in Journal of Small Business Finance 1, 1991.
In particular see C. Bisoni, L. Canovi, E. Fornaciari, A. Landi, Banca e impresa nei mercati finanziari locali Il Mulino, Bologna, 1994, as regards the Modena industrial cluster and P.Alessandrini (ed.), La banca in un sistema locale di piccole e medie imprese, Il Mulino, Bologna, 1994, as regards the SME in the Marche region. For an empirical research, even though less recent but still valid in its conclusions, at a distance of ten years, see also, A.Alberici, G.Forestieri R.Ruozi, per Confmdustria, Comitato Nazionale Piccola Industria, Il costo effettivo del credito nelle piccole e medie industrie, Editore S.I.P.I., Roma, 1983.
See G.De Laurentiis Rating interni e credit risk management, Bancaria Editrice, Milano, 2001. Written by the same author and on the same topic, Il rischio di credito. I fidi bancari nel nuovo contesto teorico, normativo e di mercato, EGEA, Milano, 1994.
On the topic of the enterprise’s financial requirement analysis as a customer’s relations indicator, see A. Giampaoli Banca e impresa, EGEA, Milano 2000
In the last ten years, the ratios analysis ruled uncontested the Italian system, both regarding the banking praxis and the professional one. Among the main papers regarding this kind of approach see: M. Cattaneo Analisi finanziaria e di bilancio, Etas Libri, Milano, 1973; P. Mella Indici di bilancio, Pirola Editore, Milano, 1990; V.Coda, G.Brunetti, M.Bergamin Barbato Indici di bilancio e flussi finanziari, Etas Libri, Milano, 1974; P.Manzonetto Indicatori ed indici nelle analisi di bilancio, F.Angeli, Milano, 1987; G.Ferrero, F.Dezzani Manuale delle analisi di bilancio. Indici e flussi, Giuffrè, Milano, 1979. the strongest critic to the ratios analysis has been brought by Giampaoli with a work that demonstrates the total unreliability of this instrument that offers ambiguous, misleading and, above all, wrong indications in presence of an enterprises’ crisis. See A.Giampaoli La programmazione finanziaria nelle imprese industriali, CUSL, Milano, 1984. and for further analysis on the topic, see also, by the same Author, Analisi e teoria finanziaria d’impresa cit. e Banca e impresa.
Besides the cited Giampaoli, there are, among the others, numenrous critics in re ipsa about the assumptions of the ratios analysis and the real significance of the components of working capital; see G. Brugger (ed.) La gestione del capitale circolante EGEA, Milano 1991.
Let’s think about the outstanding credits and the reserve for bad debts, but also about the revenue deriving from outstanding invoices as a result of an illegal cooperation with the customer (see e.g. Enron in U.S.A.).
According to the ratios analysis, the net working capital includes, both in the asset side and in the liabilities side, cash and cash equivalent, as well as financial liabilities (payables to banks and to others financial institutions).
Giampaoli demonstrates that ratios get better even if the financial requirements increase and that this situation is perfectly compatible also without sharing out profits. See Banca e impresa. Anyway, a question should naturally arise about the real ratios consistency that show an equilibrium where debts stably arise, as well as the financial debts nature cannot be misunderstanding, i.e. liabilities run to cover financial requirements. This means that the aforesaid financial equilibrium definition has to be considered wrong.
See R. Barontini La valutazione del merito di credito. I modelli di previsione delle insolvenze, II Mulino, Bologna, 2000, page 23.
See F. Cannata “Rating esterni e dati di bilancio. Un’analisi statistica” in Studi e note di Economia, 3/2001.
See R. Barontini, ibidem. The author, in particular, has been able to use extremely useful further information, as e.g., those given by the “Centrale dei rischi” and those regarding the bank’s defaulting customers (enterprises). Barontini’s research data used a sample of 700 enterprises.
See R. Barontini, ibidem, pag.233.
See G.De Laurentiis I processi di rating e i modelli di scoring in A.Sironi, M.Marsella (ed.) La misurazione e la gestione del rischio di credito. Modelli, strumenti e politiche, Bancaria Editrice, Roma, 1998, page 59.
See http://europa.eu.int/comm/economy_finance/mdicators/bachdatabase_en.htm
On this point the doubt is linked to the nature of new investments realised by the bankruptcy enterprises, as it has been impossible to know the distinction in the amount between tangible fixed assets and intangible fixed assets. These last, in fact, can be used to adopt balance policy, through the increase in asset value for internal work, with the aim of obtaining a positive net income for the year.
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Berti, A. (2004). Static and Dynamic Models for Credit Risk Assessment: Initial Findings of an Empirical Study. In: Geberl, S., Kaufmann, HR., Menichetti, M.J., Wiesner, D.F. (eds) Aktuelle Entwicklungen im Finanzdienstleistungsbereich. Physica, Heidelberg. https://doi.org/10.1007/978-3-7908-2651-7_7
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