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Regional Interest Rate Pass-Through in Italy

Author

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  • Alberto Montagnoli
  • Oreste Napolitano
  • Boriss Siliverstovs

Abstract

Montagnoli A., Napolitano O. and Siliverstovs B. Regional interest rate pass-through in Italy, Regional Studies. This paper estimates the pass-through and speed of adjustment of Italian regional interest rates to changes in the money market rate for the period 1998Q1–2009Q4. The main findings suggest that the mark-ups for the lending rates that banks charge are generally higher in the South than in the North. Moreover, the empirical results indicate that the pass-through tends to be longer in Southern regions. Furthermore, little support is found for the hypothesis that regional banks react asymmetrically when adjusting their loan rates when these are above or below equilibrium levels, but some evidence supporting an upward rigidity in the regional deposit rates is detected.

Suggested Citation

  • Alberto Montagnoli & Oreste Napolitano & Boriss Siliverstovs, 2016. "Regional Interest Rate Pass-Through in Italy," Regional Studies, Taylor & Francis Journals, vol. 50(8), pages 1404-1419, August.
    • Handle: RePEc:taf:regstd:v:50:y:2016:i:8:p:1404-1419
    DOI: 10.1080/00343404.2015.1022311
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    2. Afsin Sahin, 2019. "Loom of Symmetric Pass-Through," Economies, MDPI, vol. 7(1), pages 1-25, February.
    3. Bennouna, Hicham, 2019. "Interest rate pass-through in Morocco: Evidence from bank-level survey data," Economic Modelling, Elsevier, vol. 80(C), pages 142-157.
    4. Belke, Ansgar & Setzer, Ralph & Haskamp, Ulrich, 2016. "Bank efficiency and regional growth in Europe: new evidence from micro-data," Working Paper Series 1983, European Central Bank.
    5. John R. Posey, 2021. "The geographic redistribution of income in the United States, 1970–2010: the role of the super-wealthy," Letters in Spatial and Resource Sciences, Springer, vol. 14(3), pages 321-333, December.
    6. harraou, Khalid, 2019. "Analyse du pass-through du taux d’intérêt au Maroc [Analysis of the interest rate in Morocco]," MPRA Paper 94968, University Library of Munich, Germany.

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