Bank Intermediation under Flexible Deposit Rates and Controlled Credit Allocation: the Italian Experience

  • Mario Monti
  • Angelo Porta
  • Paul de Grauwe


The most striking feature of the Italian financial structure, compared to those of other industrial countries, is an extremely high and rising degree of liquidity. In the last two decades, and particularly in the 1970s, the process of capital formation has been associated with a very pronounced monetisation, money balances being by far the asset most largely accumulated by ultimate wealth-owners. This trend has been made possible, and to some extent stimulated, by a marked expansion of the intermediation performed by the commercial banking system.


Interest Rate Monetary Policy Banking System Monetary Authority Bank Credit 
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Copyright information

© Albert Verheirstraeten 1981

Authors and Affiliations

  • Mario Monti
  • Angelo Porta
  • Paul de Grauwe

There are no affiliations available

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