Costanza Consolandi

Risk Management for Italian Non-Financial Firms: Currency and Interest Rate Exposure

This paper surveys risk management practices among Italian non‐financial firms. This papers contribution lies in investigating derivative usage particular to Italian businesses, a group whose public disclosure of derivative instruments is not routine. Italy is characterised by a high percentage of small and medium sized family run firms. The survey examines determinants of currency and interest rate derivative use with respect currency and to firm size, geographical location, rating, industry, access to capital markets and educated management. The results from the logistic regressions suggest that Italian non‐financial firms’ use of derivative contracts is strongly influenced by these characteristics.

Financial Systems in Financial Crisis – An Analysis of Banking Systems in the EU

The goal of this paper is twofold. First, we describe briefly the French banking sector, presenting its main development since the 1980s and its key characteristics. Second, we analyse the consequences of the financial crisis on the French economy and its banks. In particular, we emphasise the resilience of the French banking model, as no major bankruptcy has occurred in the banking sector since 2008 and private agents have continued to finance their activity without intense credit rationing. However, concerns over the soundness of the French financial system remain unaddressed.