The role of bank supply in the Italian credit market: evidence from a new regional survey
Andrea Orame ()
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Andrea Orame: Bank of Italy
No 1279, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area
The work analyses the characteristics of supply in the Italian credit market with a focus on the years 2009-2014. By using a new survey, I find that approximately 40 percent of the decline in business lending originates in the tightening of bank credit standards, with a significant decrease in supply after the first semester of 2011. The data also reveal a substantial supply-side heterogeneity: illiquid, profitable, efficient and group-member banks reduce their supply further, as do banks with a low dependence on interest income. Banks in larger groups also display a different supply pattern, with greater tightenings and easings. Capital and funding seem to play no significant role.
Keywords: financial crisis; supply of credit; bank lending; bank fragility; universal banking; capital; regulation; governance (search for similar items in EconPapers)
JEL-codes: E32 E51 G01 G21 G28 G32 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1279_20
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