Fighting the Mafia boosts bank lending and local growth
Adrian Bogdan
The EU is determined to clamp down on organised crime’s infiltration of legitimate businesses and banking. This column shows that dismantling Mafia connections leads to more bank credit to legitimate businesses, raising local output and productivity. It also leads to a modest increase in borrowing costs, driven by foreign and non-local banks, as they update their risk models in light of new revelations. These findings suggest that tighter crime controls can strengthen the banking system and
din zilele anterioare