Deposit Funding, Market Power, ECB Monetary Transmission
Summary
Banca d'Italia Working Paper No. 1533 evaluates ECB monetary transmission during the 2022-23 tightening cycle, finding that official rate increases transferred to euro area current account yields with less intensity than historical norms. The paper finds that greater bank market power and a higher deposit share in bank balance sheets attenuated transmission to deposit costs, with the deposit-share effect being temporary while the market-power effect was more persistent and also affected lending rates to firms and households.
“Gli aumenti dei tassi ufficiali si sono trasferiti ai rendimenti dei conti correnti dell'area dell'euro con minore intensità rispetto alle regolarità storiche.”
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The working paper analyzes ECB monetary transmission during the 2022-23 rate-hiking cycle, focusing on whether official rate increases translated to euro area bank deposit rates consistent with historical patterns. Key findings include: official rate increases transferred to current account yields with less intensity than historical norms; greater bank market power attenuated monetary transmission to deposit costs; and higher deposit share in bank balance sheets similarly dampened transmission, though this effect was temporary. The market-power effect was found to be more persistent and extended to business and household lending rates.
For banking sector analysts and monetary policy researchers, these findings suggest that ECB rate decisions may have a weaker-than-expected effect on bank funding costs in highly concentrated markets. Banks with significant market power and large deposit franchises may face reduced incentive to pass on rate increases to depositors, preserving net interest margins at the expense of monetary transmission effectiveness.
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Apr 23, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
N. 1533 - Raccolta attraverso depositi, potere di mercato e trasmissione della politica monetaria
Temi di discussione (Working Papers) di Simone Auer, Antonio Maria Conti e Paolo Farroni Aprile 2026
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Il lavoro valuta se la trasmissione della restrizione monetaria operata dalla Banca centrale europea nel biennio 2022-23 ai tassi di interesse bancari sia stata in linea con l'esperienza storica e in che misura il potere di mercato degli intermediari e la quota dei depositi nei loro bilanci abbiano influenzato l'intensità di tale trasmissione.
Gli aumenti dei tassi ufficiali si sono trasferiti ai rendimenti dei conti correnti dell'area dell'euro con minore intensità rispetto alle regolarità storiche. Un maggiore potere di mercato delle banche e una più elevata quota di depositi nei loro bilanci tendono ad attenuare la trasmissione della politica monetaria al costo della raccolta. L'effetto associato al peso dei depositi è di natura temporanea; quello ascrivibile al potere di mercato è più persistente e interessa anche i tassi sui prestiti a imprese e famiglie.
Testo della pubblicazione
- 23 aprile 2026 N. 1533 - Raccolta attraverso depositi, potere di mercato e trasmissione della politica monetaria PDF 5 MB (testo in inglese)
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