In recent years, Italian banks have handled successive waves of crises following the outbreak of the pandemic, starting from a stronger position than they had in past crises, which has allowed them to provide firms and households with the credit needed to make it through the most difficult phases.
As more firms face mounting financial troubles, banks will need to re-focus on the long-term viability of their corporate customers. Sometimes debt restructuring may be part of the solution. Government support and low interest rates may provide a helping environment here.