A recent strand of literature emphasizes a scope economy between bank funding and lending, which is related to the banks' role of liquidity providers. These papers find that the presence of demand deposits can “naturally” hedge the liquidity risk stemming from unused loan commitments...

At the end of 1990s, the issuance of option contracts was mostly a privilege of the official option exchange, but around the years 1998-1999 banks started to issue a large number of option-like securities named warrant or, as in Italy, covered warrant. These instruments are expected to have the...

This paper studies the determinants of net interest margin and of the exposure to the interest rate risk of a sample of 125 local Italian banks during the period 2006-2018. Relative to prior literature, to take advantage of the unprecedented interest rate environment determined by European...