Since 1 January, five Lombardy-based mutual guarantee institutions have joined forces to create a new hub offering innovative credit tools to SMEs. Today, Confidi Systema! unveiled its plans for developing the real economy to the financial community and institutions. With nearly 60,000 member companies, over €1 billion in outstanding loans, €538 million in guarantees, and €225 million in available liquidity, the new company is already one of the largest mutual guarantee institutions in Italy.

Milan, 15 February 2016 – Promoting growth to support businesses and the local area, guaranteeing credit, and acting as a valid and credible partner for banks. These are the objectives of Confidi Systema!, the company established on 1 January through the merger by incorporation into ArtigianFidi Lombardia of Confidi Lombardia, Confidi Province Lombarde, Co.f.a.l. (Consorzio fidi agricoltori lombardi), and Federfidi Lombarda.

During a roundtable discussion held today at the headquarters of Il Sole 24 Ore, Chairman Lorenzo Mezzalira outlined the strategic direction of Confidi Systema! to the banking sector and institutions: to strengthen and increase the efficiency of the mutual guarantee system and to maximise the effectiveness of credit services for SMEs. The new entity is, in every respect, a guarantee serving the real economy, with a strong capital base, a solid financial position, and significant growth potential.

The debate was attended by, among others, Alberto Ribolla, President of Confindustria Lombardia, Matteo Lasagna, President of Confagricoltura Lombardia, and Eugenio Massetti, President of Confartigianato Lombardia, representing the three confederations that supported the Confidi Systema! project. The new hub is already one of the largest mutual guarantee institutions in Italy, with nearly 60,000 member companies, over €1 billion in outstanding loans, €538 million in guarantees, a 78.9% provision for non-performing loans, a 20% Total Capital Ratio, and €225 million in available liquidity. With a volume of financial activities exceeding €600 million, Confidi Systema! has submitted an application to the Bank of Italy for registration in the Register of Supervised Financial Intermediaries under Article 106 of the new Consolidated Banking Act and is awaiting the outcome of the assessment.

Bolstered by these figures, the new company represents a solid and balanced anchor for the market, providing the ideal conditions to be recognised as a primary partner by the banking system. Professionalism, expertise, and personalised service complete the guarantee offering for Lombardy businesses and beyond. Confidi Systema! has a widespread presence across the region to actively involve the associations themselves and ensure service coverage for its entire membership base. Currently, 50 commercial agents are operating across three major territorial areas (Southern Lombardy and Piedmont, Northern Lombardy, and Milan and Eastern Lombardy). New and innovative credit tools will soon be added, alongside the guarantees provided by Confidi Systema! on behalf of companies to more than 70 partner banks, with coverage of up to 80% where a counter-guarantee from the Central Fund is present.

“Confidi Systema! is a company with enormous potential,” states Chairman Lorenzo Mezzalira. “We are ready to take on the challenge of transforming this potential into growth. Our ambition is to grow while maintaining a balanced capital position, aware that focusing on capital is what allows us to continue supporting the greatest possible number of businesses over the medium and long term. Because that is what we want to do. To grow, to grow healthily, and to help our region grow.”

“The long-term objective,” states Confindustria Lombardia President Alberto Ribolla, “is to achieve a more solid relationship between the financial world and businesses. Confidi Systema is the first step in this process: its financial resources and capital strength demonstrate the power of the entire Lombardy regional system, both public and private. The mutual guarantee institution will help reduce business risk, allowing banks to provide more credit. However, refining the mutual guarantee institution means always working within the retail market.”

“In our #Lombardia2030 Strategic Plan, we identified the creation of a new corporate financial culture as a cornerstone of competitiveness for our businesses. This strategy must involve, on the one hand, companies seeking the resources necessary for their development through channels alternative to banks, while increasing transparency and strengthening their financial structure; and on the other, the ability of the Italian financial system to create an Anglo-Saxon style relationship with businesses, capable of involving significant Italian savings in productive activities,” adds Ribolla.

“Financial management and the relationship with the credit system have become increasingly important in recent years for agricultural businesses as well, partly as a result of the profound transformations affecting our sector,” states Matteo Lasagna, President of Confagricoltura Lombardia. “For this reason, we wanted to join this new project, so that we can ensure more efficient and targeted support for agricultural businesses based on their needs.”

“The strength of Confidi Systema! lies in its critical mass,” declares Eugenio Massetti, President of Confartigianato Lombardia, “which allows for the optimisation of processes, resources, and management costs, without sacrificing the proximity and closeness to the local area that remain essential elements of our DNA, as well as the founding reasons for our activity. We strongly pursued this objective,” continues Massetti, “proposing a model that was deemed successful and therefore valued. I am certain that Confidi Systema,” concludes Massetti, “will be able to make a great contribution during this transition phase for businesses to recover and sustain Lombardy’s competitiveness.”

Attachments

• 20160215_Press_Release_Confidi_Systema!.pdf