IDEAS home Printed from https://ideas.repec.org/p/bdi/opques/qef_1050_26.html

Interconnectedness in the Italian financial sector: banks, investment funds and insurance companies

Author

Listed:
  • Valentina Michelangeli

    (Bank of Italy)

  • Silvia Sacco

    (IVASS)

  • Valentino Bado

    (Bank of Italy)

  • Valeria De Chiara

    (Bank of Italy)

  • Ginette Eramo

    (Bank of Italy)

  • Francesco Ficarola

    (IVASS)

  • Irene Mavilia

    (Bank of Italy)

  • Claudia Miani

    (Bank of Italy)

  • Ivan Quaglia

    (Bank of Italy)

  • Giuseppe Reale

    (Bank of Italy)

  • Francesco Sciarretta

    (IVASS)

  • Riccardo Scimone

    (Bank of Italy)

  • Laura Sigalotti

    (Bank of Italy)

Abstract

This paper examines interconnectedness across banks, investment funds, insurance companies and the real economy in Italy between 2019 and 2025. Using a unique and comprehensive granular dataset that maps loans and securities exposures across sectors, we document the main characteristics and evolution of financial linkages. Banks have limited direct exposures to investment funds and insurers and are closely connected to households and non-financial corporations (NFCs) through loans. Insurers hold the largest securities portfolios and are the main investors in fund shares. Investment funds hold significant portfolio shares in securities issued by NFCs, and to a lesser extent by banks and other funds. Not surprisingly, our analysis of overlapping portfolios shows that bond holdings-especially Italian government securities-constitute the largest common exposure. We also evaluate intragroup links, finding that they decrease the extent of interconnectedness, especially when it comes to banking groups. Overall, our results highlight the key channels through which shocks can propagate across institutions and provide insights for enhancing risk monitoring.

Suggested Citation

  • Valentina Michelangeli & Silvia Sacco & Valentino Bado & Valeria De Chiara & Ginette Eramo & Francesco Ficarola & Irene Mavilia & Claudia Miani & Ivan Quaglia & Giuseppe Reale & Francesco Sciarretta &, 2026. "Interconnectedness in the Italian financial sector: banks, investment funds and insurance companies," Questioni di Economia e Finanza (Occasional Papers) 1050, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_1050_26
    as

    Download full text from publisher

    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2026-1050/QEF_1050_26.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdi:opques:qef_1050_26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bdigvit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.