Bank of Italy Central Credit Register Analysis: Credit Facilities, Anomalies and Creditworthiness
The Bank of Italy Central Credit Register provides an overview of a company’s credit relationships with the banking and financial system and is one of the sources used by financial intermediaries when assessing creditworthiness. CMO&A assists companies in analysing and monitoring Central Credit Register data, turning credit information into useful insights for financial management and relationships with banks.
What can Central Credit Register analysis reveal ?
Periodic analysis makes it possible to understand not only the amount of credit facilities available to the company, but also how those facilities are being used and how the company’s position within the banking system is evolving over time.
In particular, we analyse:
- credit facilities granted and amounts utilised;
- the composition of different types of bank financing;
- overdrafts and persistent over-utilisation of credit lines;
- allocation of credit facilities among different lenders;
- guarantees and other relevant information included in the reports;
- historical trends in banking relationships;
- possible anomalies, inconsistencies or entries requiring further investigation;
- consistency between the structure of credit facilities and the company’s financial requirements.
When is Central Credit Register analysis useful ?
The Central Credit Register should not be reviewed only when a problem arises. Periodic monitoring can be particularly useful before applying for new financing, when credit facilities are renewed, when the company’s financing requirements change or when information emerges that should be discussed with a bank or financial intermediary.
Where data appear incorrect or require clarification, the analysis can also help identify the entries that should be checked with the reporting intermediary. The Bank of Italy specifies that participating banks and financial companies are responsible for the accuracy of the information they report to the Central Credit Register.
Central Credit Register and company bankability
Central Credit Register data represent only one part of a company’s overall financial assessment. An effective dialogue with banks and other lenders should also be supported by up-to-date financial statements, budgets, financial forecasts, cash-flow information, debt sustainability analysis and information on future business plans.
For this reason, our Central Credit Register analysis is integrated, where appropriate, with our services relating to financial information and SME bankability and financial planning and cash-flow management.
If you would like to understand how your company is represented in the Bank of Italy Central Credit Register and review the development of its credit facilities and banking relationships, you can arrange an initial meeting with CMO&A by emailing CONSULENZE@studiassociato.it
