Bank Lending Rates and Financial Structure in Italy: A Case Study

This paper discusses the relation between the financial structure and the determination of bank lending rates in Italy. It notes that the high degree of stickiness of bank lending rates observed in Italy in the past was related to constraints on competition within the banking and financial markets....

Full description

Saved in:
Bibliographic Details
Main Author: Ferri, Giovanni (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 1995
Series:IMF Working Papers Working Paper No. 95/38
Online Access:UBW01
UEI01
LCO01
SBR01
UER01
SBG01
UBG01
FAN01
UBT01
FKE01
UBY01
UBA01
FLA01
UBM01
UPA01
UBR01
FHA01
FNU01
BSB01
TUM01
Volltext
Summary:This paper discusses the relation between the financial structure and the determination of bank lending rates in Italy. It notes that the high degree of stickiness of bank lending rates observed in Italy in the past was related to constraints on competition within the banking and financial markets. In this light, it discusses the effect on the lending rate determination process of the sweeping financial liberalization process that characterized the last few years. The paper discusses also the role of the discount rate in speeding up the adjustment process of bank interest rates, and the pros and cons of its possible indexation. The empirical analysis is characterized by use of microeconomic (individual bank) data for a group of 63 Italian banks operating in locally different financial environments. This approach allows the identification of some aspects of the relation between financial structure and lending rate stickiness that were not highlighted in previous studies
Physical Description:1 Online-Ressource (33 p)
ISBN:1451845634
9781451845631

There is no print copy available.

Interlibrary loan Place Request Caution: Not in THWS collection! Get full text