Capital requirements and credit policies in Italy: what effects do they have?
by Sabrina Leo
International Journal of Risk Assessment and Management (IJRAM), Vol. 19, No. 1/2, 2016

Abstract: The lending policies of European banks have been affected both by the effects of Basel 2 and by the economic crisis. Faced with the danger of a fall in solvency and its repercussions, authorities and policy makers have been calling for higher capital requirements. This, however, may have the effect of further reducing access to credit and trigger a vicious circle that will be difficult to break. This study examines the role of the 'EBA effect' on credits given by Italian banks, subject to additional capitalisation. The research involved analysis of data for 2007-2012 and observation of the Italian banking system, with a particular focus on lending dynamics. The study shows that there has been a decrease in lending since 2008, accompanied by financial selection and substantial 'independence' of credit trends from the recommendations of the authority.

Online publication date: Sat, 30-Jan-2016

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Risk Assessment and Management (IJRAM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com