The bank’s risk insurance and the EMU
Banks provide insurance against interest rate shocks and real shocks. After the introduction of the common currency the credit system tends to take more of the risk of the private sector, reducing the overall risk of the economy and increasing the risk sharing among different countries and regions. The increased diversification that the introduction of the Euro has allowed, has increased the smoothing of interest rate shocks, but it has increased the incentive to smooth real shocks unevenly. The integration of the credit system, where the authority to regulate national banking system is transferred to the ECB, would change in a relevant way the reaction of the banking system to shocks. The model shows that asymmetries in the transmission of monetary policy would be reduced. On the other hand, a common market for banking activities might tend to amplify the asymmetric impact of real shocks.
|Date of creation:||May 2004|
|Date of revision:||May 2004|
|Contact details of provider:|| Postal: Piazza Ateneo Nuovo, 1 Milano 20126|
Phone: +39 02 6448 3089
Fax: +39 02 6448 3085
Web page: http://dems.unimib.it
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jacques Mélitz & Frédéric Zumer, 1999.
"Interregional and International Risk Sharing and Lessons for EMU,"
- Melitz, Jacques & Zumer, Frederic, 1999. "Interregional and international risk-sharing and lessons for EMU," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 51(1), pages 149-188, December.
- Melitz, Jacques & Zumer, Frédéric, 1999. "Interregional and International Risk Sharing and Lessons for EMU," CEPR Discussion Papers 2154, C.E.P.R. Discussion Papers.
- Jacques Mélitz & Frédéric Zumer, 2000. "Interregional and International Risk Sharing and Lessons for EMU," EUI-RSCAS Working Papers 2, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
- Jacques Mélitz & Frédéric Zumer, 1999. "Interregional and International Risk Sharing and Lessons for EMU," Sciences Po publications n°2154, Sciences Po.
- Mitchell Berlin & Loretta J. Mester, 1998.
"Deposits and relationship lending,"
98-22, Federal Reserve Bank of Philadelphia.
- Hughes Hallett, Andrew & Ma, Yue & Melitz, Jacques, 1994.
"Unification and the Policy Predicament in Germany,"
CEPR Discussion Papers
956, C.E.P.R. Discussion Papers.
- Mitchell Berlin & Loretta J. Mester, 1997.
"On the Profitability and Cost of Relationship Lending,"
Center for Financial Institutions Working Papers
97-43, Wharton School Center for Financial Institutions, University of Pennsylvania.
- Berlin, Mitchell & Mester, Loretta J., 1998. "On the profitability and cost of relationship lending," Journal of Banking & Finance, Elsevier, vol. 22(6-8), pages 873-897, August.
- Mitchell Berlin & Loretta J. Mester, 1997. "On the profitability and cost of relationship lending," Working Papers 97-3, Federal Reserve Bank of Philadelphia.
- Joseph P. Hughes & William W. Lang & Loretta J. Mester & Choon-Geol Moon, 1996.
"Safety in numbers? Geographic diversification and bank insolvency risk,"
96-14, Federal Reserve Bank of Philadelphia.
- Joseph P. Hughes & William W. Lang & Loretta J. Mester & Choon-Geol Moon, 1996. "Safety in numbers? Geographic diversification and bank insolvency risk," Proceedings 504, Federal Reserve Bank of Chicago.
- Santomero, Anthony M. & Trester, Jeffrey J., 1998. "Financial innovation and bank risk taking," Journal of Economic Behavior & Organization, Elsevier, vol. 35(1), pages 25-37, March.
- Jacques MÉLITZ & Silvia VORI, 1993.
"National Insurance against Unevenly Distributed Shocks in a European Monetary Union,"
Discussion Papers (REL - Recherches Economiques de Louvain)
1993014, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Melitz, Jacques & Vori, Silvia, 1992. "National Insurance Against Unevenly Distributed Shocks in a European Monetary Union," CEPR Discussion Papers 697, C.E.P.R. Discussion Papers.
- Fama, Eugene F., 1985. "What's different about banks?," Journal of Monetary Economics, Elsevier, vol. 15(1), pages 29-39, January.
- D. J. Aigner & C. M. Sprenkle, 1968. "A Simple Model Of Information And Lending Behavior," Journal of Finance, American Finance Association, vol. 23(1), pages 151-166, 03.
- repec:spo:wpecon:info:hdl:2441/765 is not listed on IDEAS
- Hughes Hallett, A J & Ma, Yue, 1993. "East Germany, West Germany, and Their Mezzogiorno Problem: A Parable for European Economic Integration," Economic Journal, Royal Economic Society, vol. 103(417), pages 416-28, March.
- Fried, Joel & Howitt, Peter, 1980. "Credit Rationing and Implicit Contract Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(3), pages 471-87, August.
- Stiglitz, Joseph E & Weiss, Andrew, 1992. "Asymmetric Information in Credit Markets and Its Implications for Macro-economics," Oxford Economic Papers, Oxford University Press, vol. 44(4), pages 694-724, October.
- Cosimano, Thomas F. & McDonald, Bill, 1998. "What's different among banks?," Journal of Monetary Economics, Elsevier, vol. 41(1), pages 57-70, February.
- Dwight M. Jaffee & Thomas Russell, 1976. "Imperfect Information, Uncertainty, and Credit Rationing," The Quarterly Journal of Economics, Oxford University Press, vol. 90(4), pages 651-666.
When requesting a correction, please mention this item's handle: RePEc:mib:wpaper:72. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Matteo Pelagatti)
If references are entirely missing, you can add them using this form.