Italian firms face credit shortage as domestic banks tighten lending post-debt crisis.
The article shows that during the European debt crisis in 2011, Italian banks reduced lending more than foreign banks. This led to higher interest rates and lower chances of getting a loan for Italian firms. The credit shortage was mainly due to increased funding costs for Italian banks, not differences in bank types. Overall, Italian firms faced a lack of credit as domestic banks restricted lending more than foreign banks could compensate for.