New corporate credit disbursements in Italy declined 1.1% during the first half of 2026 compared to the same period in 2025, according to data released by the CRIF Enterprises Observatory, with smaller partnerships absorbing the heaviest contractions while default rates remained steady at 2.8%.
Corporate Lending Dropped in the First Half of 2026
- New corporate lending dropped 1.1% in the first half of 2026, following a period of strong expansion through 2025.
- Sole proprietorships and partnerships experienced a 3.8% drop in disbursements, while capital companies saw a marginal 0.3% decrease.
- Overall default rates held firm at 2.8%, though severe sector disparities emerged, notably within the construction and tourism industries.
Credit Disbursements Slip Across Corporate Structures
The Italian financial system continued supporting corporate liquidity requirements during the first half of the year, though at more subdued levels than the preceding twelve months. According to the CRIF Observatory, which tracks over 2.5 million businesses via the EURISC credit information system, new lending volumes fell 1.1% relative to the first half of 2025.
“The Italian financial system continues to support the funding needs of businesses,” said Luca D’Amico, CEO of CRIF Ratings, noting that current volumes follow an intense growth cycle recorded throughout 2025.
The contraction, however, was unevenly distributed across corporate legal entities. Sole proprietorships and partnerships (Ditte e Società di Persone) absorbed a 3.8% reduction in new credit. Conversely, incorporated capital companies (Società di Capitali) experienced a negligible 0.3% decline, keeping their aggregate funding streams near stability.
Mortgage Retrenchment Versus Loan Growth
Financing instruments diverged sharply during the opening six months of 2026. Mortgage loans secured by real estate experienced the steepest decline, with disbursements falling 7.5% compared to the prior year.
At the same time, unsecured loans, non-mortgage term facilities, and general commercial advances moved in the opposite direction. These alternative credit instruments expanded by 3.2%, offsetting part of the mortgage slowdown.
Total credit exposure—measuring the outstanding stock of debt—demonstrated a similar split. Outstanding debt for capital companies increased by approximately 1.9%, whereas exposure for sole proprietorships and partnerships dropped 6%. Across the entire corporate universe, outstanding credit remained virtually flat with a 0.1% decline.
| Corporate Segment | Disbursement Trend (H1 2026) | Outstanding Credit Stock | Default Rate |
|---|---|---|---|
| Total Enterprises | -1.1% | -0.1% | 2.8% |
| Capital Companies (Società di Capitali) | -0.3% | +1.9% | 3.0% |
| Sole Proprietorships & Partnerships | -3.8% | -6.0% | 2.8% |
Sector Pressures in Construction and Tourism
While the aggregate corporate default rate remained anchored at 2.8%—matching the level recorded in the second quarter of 2025—underlying industrial sectors displayed diverging credit health.
The construction sector faced mounting financial stress. New disbursements to construction firms fell 3.6%, while the sector default rate ticked upward from 4% to 4.2%. Profitability margins deteriorated concurrently, as the average EBITDA margin compressed from 11.3% to 10.3%, and debt-to-earnings ratios climbed from 4.3 to 6.6 times.
The tourism and leisure sector charted a contrasting path. Disbursements rose 1.6%, and the sector default rate eased from 3.8% to 3.7%. Tourism balance sheets strengthened as debt declined from 4.1 to 3.9 times, and liquidity buffers reached 175% compared to the national corporate average of 142%.
CRIF Ratings cautioned that if current macroeconomic and geopolitical headwinds persist, broader corporate default rates could climb toward 4.5-5% by 2027, exerting pressure primarily on structurally vulnerable industries.
Innovation Buffers Against Credit Risk
An analysis of corporate profiling by the CRIF Observatory revealed that business adaptability plays a decisive role in credit performance. Out of approximately 6 million Italian companies, researchers identified about 460,000 innovative enterprises based on patent portfolios, digital readiness, trademarks, and internationalization metrics.
Innovative firms accounted for roughly 8.4% of the national total, though concentration varied widely by region. Lombardy led with a 16.2% incidence, followed by Lazio at 11.7%, Trentino-Alto Adige at 11.3%, and Veneto at 10.8%.
Sector concentration for innovation also proved polarized. Pharmaceuticals recorded a 62% innovation incidence, chemistry reached 52.2%, and instrumental mechanics hit 49.3%, whereas construction and agriculture lingered at 2.2% and 1.7%, respectively.
Credit quality among these forward-looking firms outperformed the broader market. The default rate for innovation-oriented companies stood at 1.9%, sitting nearly a full percentage point below the 2.8% average recorded for the general business population.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
