Italian banks use Parmigiano Reggiano cheese as loan collateral

Banks in northern Italy, especially in the Emilia‑Romagna region, have long accepted wheels of Parmigiano Reggiano cheese as security for loans to small dairy farms. The practice dates back to 1953 at Credem (Credito Emiliano), which stores about half a million wheels worth hundreds of millions of euros. Monte dei Paschi di Siena and BPER also provide cheese‑backed financing, typically lending 60‑80 % of the cheese’s assessed value while the banks keep the wheels in safe storage until they reach market.

The Parmigiano Reggiano consortium comprises roughly 300 producers and 2 000 farmers, and the entire sector is valued at around €4 billion. Export demand is strong, with the United States the largest market and growing sales in Canada, the UK, Scandinavia, Japan and the Middle East. In 2025, exports exceeded 50 % of total sales for the first time. Over the past decade the price of the cheese rose from €8.5 kg⁻¹ in 2016 to €13.65 kg⁻¹ in 2025, reflecting both aging‑related value appreciation and rising global demand.