Economic History Notebook n. 50 – Banks and the purchase of public securities: the Italian experience from 1890 to today

Summary:

The online Quaderno di Storia Economica n. 50 - Le banche e l'acquisto di titoli pubblici: l'esperienza italiana dal 1890 a oggi, examines the investment of Italian banks in public bonds from 1890 to the present. The study explores the influence of the economic and institutional context on the purchase of government securities, analyzing the market conditions, financial instruments, returns, and risks. Additionally, it examines the regulation and moral suasion by public authorities.

Using a database of balance sheets from Italian banks from 1890 to the present, the study conducts an econometric analysis of the microeconomic determinants of the demand for public bonds, such as funding, liquidity, profitability, and credit risk. The study also shows how the contribution of these determinants changes during periods of increased sovereign debt risk.

This research provides valuable insights into the relationship between Italian banks and the government bond market, shedding light on the significance of institutional and economic factors in shaping the demand for public securities.