In the current economic scenario, the intangible assets contribute significantly to the construction of the competitive positioning of a company. It follows that this intangible information must be appropriately considered in the internal rating system (IRSs). Currently key aspects of business risk and operational risk such as potential for growth, competitive capabilities, core competencies, role in the supply chain of membership, and governance are being considered as secondary in this system. Intangible factors such as the milieu of the company and the environment in which it operates, are not being appropriately considered.In this book, Vincenzo Formisano proposes new guidelines aimed to set desirable IRSs in which the weight of intangible assets is appropriately and properly valued. He addresses practical rules for achieving a rating system capable of understanding and enhancing the intangible assets of a company and for the assessment of creditworthiness. The first part of the book focuses on existing practices; the second part exposes a general model for the classification and interpretation of intangibles. The third part provides practical guidelines designed to configure desirable rating models in which the weight of intangible assets is correctly considered.This book offers theoretical and practical insights and an easy-to-read approach which provides a valuable source of information for teachers and students in Finance. It is also a useful reference point for the Banking, Accounting and Finance managerial communities.

IntroductionPART I: THE CONTEXT: THE FINANCIAL SYSTEM1.1. The viable financial system1.2. Government body of the European financial system1.3. The operational structure: components, relations and management processes with a particular regard to the Italian experience1.4. The purpose of the financial system: between efficiency and stability1.5. Globalization, crisis and values in the Italian bank system: theoretical framework1.6. Recent changes in the Italian bank system1.7. Evolution in the segment of cooperative banks and related system of corporate governance1.8. The role of cooperative banks in the development of local networks of mutualityPART II: THE EVOLUTION OF THE PRUDENTIAL REGULATION2.1. Examination of the essential points of Basel Accords2.2. Standardized Approach and the Internal Ratings-Based Approach2.3. Transaction towards Basel 3PART III: THE BANKING BUSINESS: THE GOVERNMENT BODY AND THE OPERATIONAL STRUCTURE3.1. The bank such as a viable system enterprise3.2. The area of government decisions and the area of management deals3.3. Government of the bank firm3.4. The re-engineering of the credit process3.5. Main risks in the implementation of a credit risk management system3.6. The activity of control on bank risks management3.7. The operational structurePART IV: THE BANK-COMPANY RELATIONSHIP4.1. The relevance of inter-systemic relationships4.2. The evolution of the bank-company relationship4.3. The specificity of the financial structure of Italian SMEs, from financing to the contribution of capital4.4. The European market of SMEs4.5. The bank-company relationship: the importance of the risk-yield profile4.6. The concept of capital allocation in the viable system enterprise4.7. The system of capital allocation4.8. The relationship bank-control bodyPART V: INTANGIBLES IN THE ASSESSMENT OF CREDITWORTHINESS5.1. Introductory remarks5.2. The critical success factors of a business5.3. The intangible assets in companies and rating models5.4. Concluding remarksPART VI: AN EMPIRICAL CASE6.1. The credit scenario analyzed at European, national and regional level6.2. The financing of the economy analyzed as part of the province of Frosinone6.3. Sample survey carried out on a dataset of a panel of companies in the province of Frosinone6.3.1. Premise6.3.2. Definition of the sample6.3.3. Sample survey through the preparation of the questionnaire6.3.4. Administration of the questionnaire to selected companies6.3.5. Descriptive analysis of the results6.3.6. Final considerations and conclusionsClosing remarksReferencesWeb referencesAttachment A - Letter of presentation of the questionnaireAttachment B - Questionnaire