The Italian Bank Where You Can Use Parmigiano-Reggiano Cheese As Loan Collateral
There are a multitude of small cheese-producing businesses in the Emilia Romagna region like the one owned by the Caretti family, who told CNN they’ve been producing cheese since 1925. While these businesses vary in size, they share a common need for both storage of these wheels of cheese — the Caretti family produces 12,000 a year — and also funds to keep them afloat before they sell that cheese. Credem has built a business that can fulfill both needs.
CNN explains that Credem extends a low-interest loan, and their subsidiary, Magazziini Generali delle Tagliate, provides climate-controlled storage and inspection for hundreds of thousands of wheels of the valuable Parmigiano-Reggiano, according to Forbes. Lending cheesemakers funds while holding young Parmigiano-Reggiano cheese as collateral is a practice that Forbes points out Credem began in 1953. This service ties the bank to its local community and customers.
Though lending cash for crumbly cheese only makes up about one percent of the bank’s business, it integrates (bad cheese-grating pun unintended) Credem into the lives and work of the region’s residents.
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