Credit Italies Banking, Industry, and the Geography of Credit Allocation, 1893–1973 (CREDIT-IT)

CREDIT-IT investigates the relationship between banking and industrialisation in Italy between 1893 and 1973 through a historical reconstruction of credit allocation across firms, sectors, regions, and financial institutions. In doing so, it contributes to a long-standing debate in economics and economic history concerning the role of finance in industrial development. While a vast literature has examined universal banks, special credit institutions, and state intervention in finance, no study has yet systematically reconstructed how credit was allocated across the Italian economy over the long run. The project connects with renewed international interest in the relationship between finance, industrial policy, and structural transformation, fuelled by contemporary concerns about deindustrialisation, competitiveness, and regional disparities. Historically, Italy represented one of Europe’s most bankoriented economies, making it a particularly valuable laboratory for studying how financial institutions shaped industrial development. The project addresses four main questions: did the banking system promote industrial transformation or reinforce existing economic structures? Did private banks and special credit institutions support different models of industrial development? How far did regional differences in deposits and lending shape regional trajectories of industrialisation? And how did the changing relationship between the Banca d’Italia and the banking system influence the allocation of industrial credit? To answer these questions, CREDIT-IT will construct two original datasets. The Credit in Italy Database (CREDITA) will reconstruct sectoral credit allocationand the geography of deposits and loans across the Italian banking system between 1936 and 1973 using the Banca d'Italia’s Modelli 101 and 102, two supervisory returns recording, respectively, lending by sector of economic activity and deposits and loans by province. The Italian Business Credit Database (IBCD) will reconstruct lending relationships between banks and firms through archival research in the records of Banca Commerciale Italiana, Credito Italiano, Istituto Mobiliare Italiano, and the network of regional Mediocrediti. Together, these datasets will provide the first integrated reconstruction of credit allocation at sectoral, territorial, and firm level. Methodologically, the project combines quantitative and qualitative approaches. Dataset construction will rely on AI-assisted extraction techniques, automated consistency checks, manual verification, and cross-validation with archival sources. Statistical analysis of long-run credit allocation patterns will be complemented by qualitative investigation of lending practices, institutional decision-making, and the relationship between the Banca d’Italia and financial intermediaries. The resulting datasets will constitute a lasting research infrastructure and will be disseminated through a Digital Atlas of Credit in Italy.