The mortgage bonds market and housing finance in Italy

Abstract

In Italy, long- and medium-term credit is, as a rule, granted by specialised intermediaries, while short-term operations are left to commercial and savings banks. Over the last twenty years the demand for medium- and long-term finance has increased considerably and within the area of special credit, those institutions operating in the field of housing finance are the ones which have shown the highest rate of growth. This is largely due to the increased demand for housing stemming from urbanisation. The article first looks at the general aspects of the mortgage bonds market in Italy before examining supply and demand of Mortgage bonds. The authors then analyse the interventions of the monetary authorities. Finally, the role of long-term credit in housing finance is assessed.