In a recent speech, Ignazio Visco outlined the events that link investments and business development with the availability of financial support.


Development, including that of businesses, is based on clear and lucid visions of what is to be done. In other words, success comes to those who plan their own actions effectively and thus, who have a clearer vision of the world compared to others. It is a question of information, but also one of the ability to analyse. It is also a question of means. For this reason, among the many exceptional pieces available, it is worthwhile reading the speech given by Ignazio Visco (Governor of the Bank of Italy) on 13 February 2019 at the Baffi Carefin Bocconi-Equita event during the sixth conference on The Italian Corporate Bond Market: what is happening to the capital structure of Italian non-financial companies?

Visco focused in particular on the theme of ‛Corporate financing in Italy: recent evolution and prospects’, looking closer into the relationship among companies, investments and the financial situation. It was an exercise in economic culture but also in corporate culture as well.

The author stated in his opening remarks: “The development of an economy is driven by the propensity of businesses to grow and innovate.” However, to achieve this: “Companies must operate in a favourable macroeconomic context in terms of the level of taxation, the functioning of the labour market, the availability of infrastructures and efficiency in public administration. A key factor for investments is the availability of business funding options that are adequate in both quantity and quality.” From these initial words, Visco moved on to discuss the latest developments in Italian businesses regarding financial resources.

The Governor of the Bank of Italy then gave a brief historical overview of the ‛diversified’ financial system in Italy from the beginning of the 20th century to the early 2000s, when there was a decisive emergence of the capital market alongside the banks as a means of financial support for business investments. Visco then outlined today’s situation, including the opportunities and risks for businesses balancing both bank and non-bank credit.

Highlighting the importance of certainty and stability, Visco cited these two elements as essential for the development of investments sustained by diversified financing that is more attentive to non-banking sources. As mentioned earlier, it is a question not only of an economic culture but of the political and institutional cultures as well, which can also become drivers of business.


Corporate financing in Italy: recent evolution and prospects

Ignazio Visco

Baffi Carefin Bocconi-Equita, Sixth conference, The Italian Corporate Bond Market: what is happening to the capital structure of Italian non-financial companies?

Milan, 13 February 2019