In Italy, Parmesan as Collateral for Bank Loans

Image by Joi via Flickr

There is a saying that age is not important unless you’re a cheese. In Italy, the older the better. And during their worst recession since World War II,  having a huge wheel of old cheese means money in the bank.

The vaults of the regional bank Credito Emiliano hold a pungent gold prized by gourmands around the world — 17,000 tons of parmesan cheese. Emiliano’s two climate-controlled warehouses hold about 440,000 wheels worth €132 million, or $187.5 million.

Each wheel is branded with a serial number so it can be traced if stolen. Which has happened. In February, thieves made off with 570 pieces before they were nabbed by cops. Which leads into my favorite quote in the story:

“Thank heavens we caught the robbers before they grated it,” said William Bizzarri, who manages the warehouses.

But accepting the cheese means that the bank becomes involved in the aging process, turning the wheels several times a week. A master tester taps each cheese with a small metal hammer.

Mr. Bizzarri listens for hollow sounds that would indicate the wheel is a “dud” and result in its disposal. Most wheels pass the test, said Mr. Bizzarri, who sold financial products and managed bank branches before taking over the cheese unit. After a year they are branded with the parmigiano-reggiano logo and serial numbers and tags. When loans are not repaid, Credito Emiliano sells the cheese to recover its investment, returning any difference to the producer.

“It’s not our main source of funds, but it helps producers and shows there are more ways than one to keep doing business,”Mr. Bizzarri said. “Let’s say it’s a way to put our heritage to good use.”

In Italy, Parmesan as Collateral for Bank Loans – NYTimes.com.