| Description |
1 online resource (26 pages) : color illustrations |
| Series |
IMF working paper ; WP/13/84 |
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IMF working paper ; WP/13/84.
|
| Contents |
Cover; Contents; I. Introduction; II. Factors Driving Italian Sovereign Spreads; III. Impact of Sovereign Spreads on Banks' CDS Spreads; IV. Impact of Sovereign Spreads on Banks' Bond Yields; V. Impact of Movements in Sovereign Spreads on Lending Conditions; VI. Conclusions; Appendices; 1. Determinants of Italian Soverign Spread; 2. List of Events Corresponding to Good and Bad News; 3. List of Banks Included in the Sample for the Analysis for Section III; 4. Estimated Credit Demand and Supply; References |
| Summary |
"Volatility in Italian sovereign spreads has increased since mid-2011. This paper finds that news on the euro area debt crisis and country specific events were important drivers of sovereign spreads. Movements in sovereign spreads affect CDS spreads and bond yields of Italian banks, and are transmitted rapidly to firm lending rates. Banks with lower capital ratios and higher nonperforming loans were found to be more sensitive to swings in sovereign spreads. Credit supply constraints due to bank funding shortages from the sovereign debt crisis were a major factor behind the lending slowdown in late 2011, while in 2012 weak demand appears to have been driving changes in credit more than supply"--Abstract |
| Notes |
Title from PDF title page (IMF Web site, viewed Apr. 8, 2013) |
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"April 2013"--Page 2 of pdf |
| Bibliography |
Includes bibliographical references (pages 23-25) |
| Subject |
Bonds -- Italy
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Debts, Public -- Italy
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Banks and banking -- Italy -- Costs
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Finance -- Italy
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Loans -- Italy
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Banks and banking -- Costs
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Bonds
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Debts, Public
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Finance
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Loans
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Italy
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| Form |
Electronic book
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| Author |
International Monetary Fund, issuing body.
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