 Is the Italian green mortgage market ready to take off?Luigi Abate (),
Valeria Lionetti () and
Valentina Michelangeli
No 868, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area Abstract: The nascent green mortgage market in Italy appears set for takeoff, with several promising indicators now in evidence. In 2022, the green mortgages issued by banks, accounting for over 50 per cent of total assets in the Regional Bank Lending Survey, reached over 6 per cent of the total volume of household mortgages, reflecting the growth in both demand and supply. Significant institutions (SIs), which are also the banks that grant the vast majority of green loans, are more aware of the energy efficiency of the collateral of loans. Given that SIs, the dominant players in the market for household loans, are already in the green mortgage market or are planning to enter it in the next few years, this segment could expand much further. An econometric analysis based on mortgage offers data provided by the main Italian mortgage broker indicates that, in the period from September 2022 to June 2023, the interest rate differential between non-green and green mortgages (green mortgage discount) was about 7 basis points on average. Keywords: green mortgages; pricing; banking (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_868_24 Access Statistics for this paper More papers in Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC. |
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