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Archive » January 2022 » The cost of risk of Italian banks after the crisis: destruction of value and transfer of resources

The cost of risk of Italian banks after the crisis: destruction of value and transfer of resources

Lorenzo Faccincani
January 2022 - n. 1
Keywords: Banche, rischi, crisi
Jel codes: G01, G21, G32

Through a critical analysis of financial statements and market data, the essay examines the credit impairment losses, the economic value generated and the amounts that have been distributed to stakeholders (shareholders, employees, suppliers and the State) by a sample of significant Italian banks in the period between 2007 and 2020. As evidence of the role played by banks in mitigating the effects of the macroeconomic shocks, the empirical evidence presented shows that the impairment on loans have led, albeit in a mediated and indirect manner, to a large transfer of resources from some stakeholders – mainly shareholders but also suppliers and the State – to the debtors that have defaulted.

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