Italian banks and market-based corporate financing

Giorgio Albareto () and Giuseppe Marinelli
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Giorgio Albareto: Banca d�Italia

No 432, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The recent financial crisis has induced firms to turn increasingly to financing sources other than bank credit, and banks to boost their income from non-lending services. This paper provides some evidence concerning possibility and convenience for Italian banks to expand the supply of financial services to firms by examining the placement market for Italian corporate securities and its relationship with the credit market in the period 2000-2016. The paper shows that when firms entered the stock and bond markets, bank credit was partially crowded-out and interest rates dropped for both first-time issuers and risky firms. However, when banks also played a major role both in placing corporate issues and in financing the issuers, lending relationships did not weaken.

Keywords: stock and bond issues; securities placement; banks� profitability; corporate financing (search for similar items in EconPapers)
JEL-codes: G21 G24 G30 G32 (search for similar items in EconPapers)
Date: 2018-03
New Economics Papers: this item is included in nep-ban, nep-cfn and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_432_18

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