When banks meet. From interbank market to internal capital market
A. Giannola
Rivista economica del Mezzogiorno, 2009, issue 1-2, 9-26
Abstract:
This paper considers the process of credit allocation in two regions - two banks system. The Regions are similar in size but one is significantly more developped of the other. The case of independent banks, where an interbank loan market exists is confronted with the case in which one bank incorporates the other giving birth to a unified internal capital market. Two different situations are analysed: in the first, the systemic risk in the less developped Region is higher than in the other one. In the second case there is no difference in risk but only a structural difference represented by a number of firms for each class of risk greater in the more developped Region with respect to the other one. In both cases the amount of loans to firms of the less developped Region decreases after incorporation.
Keywords: Banks system; Italian Mezzogiorno (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:
Downloads: (external link)
https://www.rivisteweb.it/download/article/10.1432/29872 (application/pdf)
https://www.rivisteweb.it/doi/10.1432/29872 (text/html)
Access to full text is restricted to subscribers
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:mul:jqyfkm:doi:10.1432/29872:y:2009:i:1-2:p:9-26
Access Statistics for this article
Rivista economica del Mezzogiorno is currently edited by Riccardo Padovani
More articles in Rivista economica del Mezzogiorno from Società editrice il Mulino
Bibliographic data for series maintained by ().