Uncertainty about the capacity of the banks to make these repayments, and hence about the scale of the likely call on the State to step in, has represented a cloud over the public finances. This is the other main channel of interdependence between the banks and government.
8  Figure 2  Emission intensity and propensity to invest in “green” technologies  Source: elaborations on an experimental dataset of Italian non-financial limited liability companies built by Accetturo, Barboni, Cascarano, Garcia-Appendini, Tomasi (2022). Credit supply and green investments. Mimeo.