For nearly two and a half years, businesses across Italy faced a relentless squeeze as bank loans dried up, leaving many entrepreneurs gasping for financial air. But as summer 2025 rolled in, the tide finally turned. According to data from the CGIA research office, the last four months (June to September 2025) marked a long-awaited reversal: bank lending to economic activities increased by nearly 6 billion euros compared to the start of the year, pushing the total outstanding loans to a hefty 647 billion euros. That’s a significant jump from the end of 2024, signaling a newfound willingness among banks to support the country’s productive backbone.
Yet, as is often the case in Italy’s complex economic landscape, not everyone has felt this newfound generosity. The numbers tell a nuanced story: companies with more than 20 employees saw a 1.5% increase in loans in the first seven months of 2025, amounting to an extra 8.2 billion euros in their coffers. Meanwhile, their smaller counterparts—those with fewer than 20 employees—actually experienced a 2.8% decrease, losing 2.7 billion euros in available credit, as highlighted by both CGIA and Giornale Nord Est.
This may sound like an accounting footnote, but it’s anything but trivial. Small businesses are the lifeblood of Italy’s economy, making up 98% of all companies and employing nearly 55% of Italians outside the public sector. When these enterprises struggle to secure loans, the ripple effects are felt in every corner of the country—from family-run workshops in Tuscany to bustling artisan markets in Sicily.
Why are small businesses still struggling to access credit, even as the overall lending climate improves? The answer, according to CGIA, lies in the evolving priorities of Italy’s banking sector. Over recent years, many banks have opted to "sacrifice" the more complex and costly loans typically required by micro-enterprises. These loans, compared to those for larger corporations, come with higher administrative hurdles and processing costs. Add in the wave of bank mergers and consolidations over the past two decades, and it’s easy to see why the local, relationship-driven model that once favored small business lending has faded.
The consequences of this shift are especially stark in regions like Veneto. Despite the national rebound, Veneto’s businesses saw a 1.4% drop in bank loans between December 2024 and July 2025—a loss of 868 million euros, according to Giornale Nord Est. This ongoing credit crunch has persisted almost without pause for 14 years, ever since the collapse and subsequent disappearance of regional banking giants like Antonveneta (2013), Veneto Banca, Banca Popolare di Vicenza, and Banco Popolare (all in 2017). The fallout from these closures continues to haunt local entrepreneurs, as credit decision-making power has migrated to major financial centers like Milan and Turin, leaving Veneto’s small businesses feeling sidelined.
Within Veneto itself, the pain is unevenly distributed. Verona and Treviso have been hit hardest in 2025, with loan volumes falling by 520 million euros (-3.7%) and 432 million euros (-3.3%) respectively. Belluno, Rovigo, and Padua also posted declines, while Venice and Vicenza bucked the trend, registering increases of 157.8 million euros (+1.8%) and 287.8 million euros (+2.4%) respectively. The role of Banche di credito cooperativo (Bcc)—the region’s cooperative banks—has been vital in providing what little stability remains, serving as the last stronghold for local credit access.
This patchwork of fortunes isn’t confined to Veneto. Nearly half of Italy’s provinces have yet to see any increase in bank loans to businesses since the end of 2024. Imperia and Prato both recorded a 5.6% decrease, while Vercelli and Avellino fared even worse, with drops of 5.7% and 5.8% respectively. On the flip side, some provinces are thriving: Aosta leads the nation with an 18.3% surge (+284.6 million euros), followed by Trieste (+12.8%, +383.5 million euros) and Oristano (+9.2%, +65.7 million euros).
Italy’s major economic hubs have also enjoyed modest gains. Rome saw a 4.1% increase in lending (+2.3 billion euros), Bergamo climbed by 3.4% (+530 million euros), Florence rose by 2.6% (+329.2 million euros), and Milan notched a 2.2% bump (+2.3 billion euros), according to figures published by CGIA.
So, what’s behind this broader shift in the banking sector’s attitude? Two factors stand out. First, there’s been a marked decline in bank loan bad debts—a sign that borrowers are healthier and less risky than in recent years. Second, the European Central Bank’s decision to lower interest rates has created a more favorable environment for both lenders and borrowers. As a result, banks are once again willing to "risk together" with businesses, as CGIA puts it, restoring some of the confidence that had evaporated during the long credit drought.
Still, the uneven recovery has prompted calls for targeted intervention. Giornale Nord Est reports on a proposal to establish a dedicated credit line for micro and small enterprises, offering loans at market conditions but with zero spread—meaning recipients would pay only the European Central Bank’s base rate. Proponents argue this would provide a much-needed lifeline to the productive sectors most battered by the credit crunch, especially in regions like Veneto where the scars of banking upheaval are still raw.
Despite all the turbulence, one thing remains clear: banks continue to play an essential role in Italy’s economic fabric. As CGIA notes, "Their contribution is fundamental, especially for the future of so many artisans and small entrepreneurs, who can only keep their businesses alive, create new jobs, and further enhance the products of our Made in Italy with adequate access to credit." The world recognizes Italian goods for their excellence, quality, design, and tradition—but without the grease of credit, even the finest gears can grind to a halt.
For now, the return of liquidity signals hope, but that hope is tempered by persistent regional and sectoral disparities. As policymakers debate new measures and banks weigh their risk appetites, the fate of millions of Italian businesses—and the communities that depend on them—hangs in the balance. The coming months will reveal whether this rebound is the start of a lasting recovery or just a fleeting respite in a long, uneven journey.
