In particular, the information contained in the Central Credit Register includes the exposure of each bank to each individual firm: this enables us to assess the consistency of the different banks’ classifications of the same borrower, checking that non-performing debtors are not classified as performing by some intermediaries.
Moreover, the Bank of Italy monitors the adequacy of loan classification criteria through extensive on-site inspections, among other things in order to curb the forbearance risk typical of economic slowdowns.