Judicial efficiency improves bank credit – Bank of Italy paper

The Bank of Italy

Greater efficiency by Italian courts is associated with significantly better bank loan conditions for firms, a working paper published by the Bank of Italy finds.

In Judicial efficiency and bank credit to firms, Giacomo Rodano uses a dataset on all Italian firms with bank debts of at least €30,000 ($35,500). Different Italian regions take widely varying approaches to enforcing judicial rulings, Rodano says. This allows analysts to isolate the effects of judicial enforcement on banks’ lending

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