Abstract
The chapter considers the process of credit allocation in a two regions (North and South) – two banks system. The case of independent banks, and the operating of the interbank loan market is confronted with the case in which one bank (the Northern one) incorporates the other giving birth to an unified internal capital market. Two different situations are analysed: in the first, the systemic risk in the Southern Region is higher than in the Northern one. In the second case there is no difference in risk but only a structural difference represented by the number of firms for each class of risk being greater in the Northern Region than in the Southern one. It is shown that in both cases the amount of loans to Southern firms decreases after incorporation.
Similar content being viewed by others
References
Alessandrini, P., Croci, M., & Zazzaro, A. (2005). The geography of banking power: the role of functional distance. (This Volume, Chapter 4)
GiannolaA(2003)Il credito nel Mezzogiorno. Questione risolta? Riv Econ Mezzog, 3. 351–374.
Giannola, A.(2006). Riforme e mutamento strutturale in Italia. Roma: Carocci.
Giordano, L., & Lopes, A. (2008). Measuring efficiency of banking system in a dualistic economy: do bank size and juridical structure matter? Evidence from the Italian case. (This Volume, Chapter 8)
Houston, J., & James, C.(1998). Do internal capital markets promote lending? Journal of Banking and Finance, 22, 899–918.
Panetta, F.(2004). Il sistema bancario negli anni'90. Gli effetti di una trasformazione. II Mulino: Bologna.
Sapienza, P. (1998). The effects of banking mergers on loan contracts. CEPR paper.
Zazzaro, A.(2008). I vincoli finanziari alla crescita delle imprese. Roma: Carocci.
Acknowledgments
I wish to thank Piero Alessandrini for helpful comments to an earlier draft of this work and Damiano Silipo for his most useful contributions to clarify the argument of the first section of this chapter. The usual disclaimer applies.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2009 Springer Physica-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Giannola, A. (2009). Bank Mergers and Credit Allocation Among Italian Regions. In: Silipo, D. (eds) The Banks and the Italian Economy. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2112-3_6
Download citation
DOI: https://doi.org/10.1007/978-3-7908-2112-3_6
Published:
Publisher Name: Physica-Verlag HD
Print ISBN: 978-3-7908-2111-6
Online ISBN: 978-3-7908-2112-3
eBook Packages: Business and EconomicsEconomics and Finance (R0)