“Pyou would leave your money to someone you don't know, without being sure of getting them back?
Lenders think the same way when they have to lend money e, before the birth of Credit Information Systems (SIC), the only forms of protection they typically resorted to, against the granting of a loan, they were the mortgage on the house, the pledge on an asset or the guarantee by a third party (that is, real and personal guarantees).
Today, instead, thanks to the role played by SIC, banks and financial companies can provide credit based on the good credit history of those who request it, without necessarily making use of further guarantees.
The credit "reference" allows those who request a loan to obtain a response in a short time e, potentially, conditions appropriate to one's debt and creditworthiness profile "
The text is taken from the CRIF website where it presents the Credit Information System.
In an economic structure where much of the growth of families and businesses is supported by the presence of credit which transforms them into debtors, compliance with the commitments made comes into play. It was once dishonorable not to respect them. Especially those with banks.
Outside the specific moment that prompted the government to move in the direction of the state guarantee, in generale in the creditor / debtor relationship, referring to a "healthy system" – thus clearing the field of loans to friends of friends, political and other influences crap already well told many times by the media – for loans granted, banks need the liquidity that derives from timely repayment of the debt.
In the absence of it, the risks for the banks of not seeing the money back are increased, in fact, there are currently hundreds of billions of non-performing loans (you see Bank of Italy report on financial stability).
Of course there are guarantees but it is good to remember that for a bank the enforcement of the pledge can become a grueling long and tiring path to recover what is owed to it.
Thus it happens that a reduction in credit is generated or the disbursement only to those who need it least.
To avoid this the solution could be to have less exaltation of moral hazard by the debtor e less risk of not seeing back the money he has lent to the lender.
Alex Gaetani