Summary of Accesso al credito: cosa guarda la banca?

The video "Accesso al credito: cosa guarda la banca?" explains the key financial indicators and considerations banks use when deciding whether to finance a company, emphasizing a forward-looking approach.

Main Financial Strategies and Market Analyses:

• Forward-Looking Approach: Banks now focus on the future sustainability of a company's debt, requiring businesses to prepare financial plans.
• Key Financial Indicators:
  • DSCR (Debt Service Coverage Ratio): Measures if the company’s operating cash flows can cover annual debt service. A DSCR greater than 1 is required.
  • PFN Ratio (Net Financial Position to EBITDA): Assesses how many times the financial debt exceeds EBITDA. Typically, this should not exceed 4 or 5, as higher values indicate excessive debt.
• Role of Guarantees:
  • Although credit is not granted solely based on guarantees, they remain important to protect the bank’s own funds.
  • Guarantees reduce the risk weight of the loan under Basel Protocol regulations, allowing banks to allocate less capital for the same amount of credit.
  • Example: A Mortgage Loan has a risk weight of 20%, so the bank only needs to allocate 10% of that 20% as equity, which is less capital absorption compared to an unsecured loan.

Step-by-Step Guide to What Banks Look At:

• Assess the company’s future debt sustainability using forward-looking financial plans.
• Calculate DSCR to ensure operating cash flows cover debt service (DSCR > 1).
• Calculate the PFN to EBITDA ratio to check if debt levels are manageable (typically PFN/EBITDA ≤ 4-5).
• Evaluate the presence and quality of guarantees to reduce risk-weighted assets and capital requirements.
• Consider regulatory constraints (Basel Protocols) on capital allocation for loans.

Presenters/Sources:

The video does not specify individual presenters but references guidelines such as the EVA guidelines, the Insolvency Code of the business crisis, and regulatory frameworks like the Basel Protocols and the ECB’s Asset Quality Review.

Category

Business and Finance

Video