These findings apply also to large corporations, which are the least likely to be “captured” by their banks.4 Growth of the markets: a possible change An under-developed capital market and the productive system’s reliance on bank lending have thus been the short-sighted response of Italian firms and banks to incentives. Accordingly, they have been a typical feature of our financial system.
With the Government’s access to market funding severely curtailed, the Central Bank did not hesitate to recommend a prompt application for assistance to the EU and IMF financial support facilities. It provides a window of time during which the Government can demonstrate its adherence to a convergent fiscal strategy, thereby helping to rebuild market confidence. To date, the programme is firmly on track.