Moreover, the prospect that a portion of the funds assigned by the Stability Law could be channelled to other areas of activity and for purposes other than supporting firms, risks dissipating the Fund’s resources and eroding its effectiveness. Finally, to stimulate the supply of loans there is a need to introduce mechanisms that reward banks with the highest rates of increase in total lending.
Further interventions to support credit have been made by the public sector through the Cassa Depositi e Prestiti. 14 In the private sector, the moratoriums agreed between the Italian Banking Association and firms’ associations have enabled many SMEs to weather difficult times.