Do banks take alternative collateral?

 In Northern Italy, a bank called Credito Emiliano accepts cheese as collateral from local farmers.

This tradition dates back to medieval times when cheese was designed to last a long time because there was no refrigeration to preserve dairy products.

Farmers who don’t have other valuable assets to offer can use their cheese as security for loans.

The cheese stored in the bank’s warehouses is worth over 100 million euros. This system is a big help for farmers who need money but can’t afford to store the cheese themselves.

The bank’s warehouse has advanced storage techniques and takes better care of the cheese than the farmers could on their own.

It’s an interesting setup—though it’s hard to imagine a bank like Bank of America accepting cheese as collateral!

Read Also:- What is more important to succeed in life, hard work or talent?

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