The impact of the bank-firm relations on the propagation of monetary policy squeezes: an empirical assessment for Italy
DOI:
https://doi.org/10.13133/2037-3643/10922Keywords:
Bank-firm relations, Italian credit market, interest ratesAbstract
The work analyses the bank-firm relationship in Italy, in order to verify its impact on the behaviour of banks towards customers and the effects on the transmission of monetary policy impulses. The authors single out a sub-group of borrowers whose dependence upon banks seems to be particularly close and examine banks’ behaviour towards this subgroup vis-a-vis other groups of firms. The analysis differs from previous empirical research in that a wider sample of non-financial firms is used, a stability index is employed among the explanatory variables, and the importance of customer relationships is tested with reference to the response of interest rates applied by banks during Italy’s sever episode of monetary restriction in 1992. Specifically, the work looks at the relation between the closeness of bank-firm relations and the probability of being rationed, the multiple borrowing of firms and the possibility that the recent consolidation of the banking system is bound to determine a strengthening in customer relationships.
JEL Codes: G21
References
ANGELINI, P. and L. GUISO (1994), "Razionamento del credito alle imprese. Cause, diffusione e persistenza", Banca d'Italia, typescript.
ANGELONI, I., L. BUTTIGLIONE, G. FERRI and E. GAIOTTI (1995), "The credit channel of monetary policy across heterogeneous banks: the case of Italy", Banca d'Italia, Temi di discussione, n. 256.
BAGLIANO F. and C. FAVERO (1995), "The credit channel of monetary transmission. The case of Italy", paper presented to the Convention on "I meccanismi di trasmis-sione della politica monetaria", Università Cattolica del S. Cuore, Milano, 10 feb-braio.
BANCA D'ITALIA (1995), "La Centrale dei rischi. Obiettivi, attualità, prospettive", Tematiche istituzionali, maggio.
BANCA D'ITALIA (1995), Relazione sul 1994, Roma.
BERGER, A.N. and G.F. UDELL (1992), "Some evidence on the empirical significance of credit rationing", Journal of Political Economy, vol. 100, no. 5, pp. 1047-77.
BERGER, A.N. and G.F. UDELL (1995), "Relationship lending and lines of credit in small firm finance", Journal of Business, no. 3, pp. 351-81.
BERNANKE, B. and M. GERTLER (1995), "Inside the black box: the credit channel of monetary policy transmission", Journal of Economic Perspectives, no. 4, pp. 27-48.
BOOT, A.W.A. and A.V. THAKOR (1994), "Moral hazard and secured lending in an infinitely repeated credit market game", International Economic Review, no. 4, pp. 899-920.
BORIO, C.E.V. and W. FRITZ (1995), "The response of short-term bank lending rates to policy rates: a cross-country perspective", in Bank for International Settlements ed., Financial Structure and the Monetary Policy Mechanism, Basle, pp. 106-53.
BUTTIGLIONE, L. and G. FERRI (1994), "Monetary policy transmission via lending rates in Italy. Any lessons from recent experience?", Banca d'Italia, Temi di discussione, n. 224.
CAPRA, L., N. D'AMICO, G. FEIUU and N. PESARESI (1994), "Gli intermediari della riallocazione proprietaria in Italia", in Assetti proprietari delle imprese, vol. III, il Mulino, Bologna.
CESAIUNI, F. (1977), "Aspetti tecnico-istituzionali del finanziamento dell'impresa", in P. Abbadessa et al., Crisi e riforma dell'impresa, De Donato, Bari, pp. 16-31.
CIOCCA, P. (1991), Banca, finanza, mercato, Einaudi, Torino.
CONIGLIANI, C. and G. LANCIOTTI (1978), "Concentrazione, concorrenza e controlli all'entrata", in G. Carli, a cura di, La struttura del sistema creditizio italiano, il Mulino, Bologna, pp. 377-442.
CONIGLIANI, C. (1990), La concentrazione bancaria in Italia, il Mulino, Bologna.
COTTARELLI, C., G. FERRI and A. GENERALE (1995), "Bank lending rates and financial structure in Italy: a case study", IMF Staff Papers, vol. 42, no. 3, pp. 670-700.
D'AURIA, C. and A. FOGLIA (1997), "Le determinanti del tasso di interesse sui crediti alle imprese", Banca d'Italia, Temi di discussione, n. 293.
DETRAGIACHE, E., P.G. GARELLA and L. GUISO (1997), "Multiple versus single banking relationships", CEPR Working Paper, no. 1649, May.
EDWARDS, J. and K. FISCHER (1994), Banks, finance and investment in Germany, Cambridge University Press.
FERIU, G. and G.B. PITTALUGA (1996), "Il finanziamento delle imprese nelle fasi di restrizione monetaria. II caso del Credito Cooperativo", Cooperazione di Credito, n. 152/3, pp. 473-506.
FRIED, J. and P. HOWITT (1980), "Credit rationing and implicit contract theory", Journal of Money, Credit, and Banking, vol. 12, no. 3, pp. 471-87.
GERTLER, M. (1988), "Financial structure and aggregate economic activity: an overview", Journal of Money, Credit, and Banking, vol. 20, no. 3, pp. 559-88.
GERTLER, M. and S. GILCHRIST (1994), "Monetary policy, business cydes, and the behavior of small manufacturing firms", Quarterly Journal of Economics, no. 2, pp. 309-40.
GIANNINI, C., L. PAPI and A. PRATI (1991), "Politica di offerta e riallocazione del credito bancario negli anni ottanta", Banca d'Italia, Temi di discussione, n. 151.
GORTON, G. and J. KAHN (1993), "The design of bank loan contract, collateral, and renegotiation", NBER Working Paper, no. 4273.
GREENBAUM, SI, G. .......NATAS and I. VENEZIA (1989), "Equilibrium loan pricing under the bank-client relationship", Journal of Banking and Finance, no. 2, pp. 221-36.
HELLWIG, M. (1991), "Banking, financial intermediation and corporate finance", in A. Giovannini e C. Mayer eds, European Financial Integration, Cambridge University Press, Cambridge.
HUBBARD, R.G. (1994), "Is there a credit channel for monetary policy?", NBER Working Paper, no. 4977, December.
PADOA-SCHIOPPA, T. (1994), "Profili di diversità nel sistema bancario italiano", Banca d'Italia, Bollettino Economico, n. 22.
PADOAN, P.C., A. PEZZOLI and F. SILVA (1989), Concorrenza e concentrazione nell'industria italiana, il Mulino, Bologna.
PETERSEN, M.A. and R.G. RAJAN (1994), "The benefit of firm-creditor relationships: evidence from small business data", Journal of Finance, no. 1, pp. 3-37.
PETERSEN, M.A. and R.G. RAJAN (1995), "The effect of credit market competition on lending relationships", The Quarterly Journal of Economics, no. 2, pp. 407-43.
SHARPE, S. (1990), "Asymmetric information, bank lending, and implicit contracts: a stylized model of customer relationships", Journal of Finance, no. 45, pp. 1069- 87.
THORNTON, J. (1991), "The relative size of banks and industrial firms in Japan, the United States and the European Community", University College of North Wales, Institute of European Finance, Research Papers in Banking and Finance, no. 4.
Downloads
How to Cite
Issue
Section
License
