Intermediation model, bank size and lending to customers: is there a significant relationship? Evidence from Italy between 2008 and 2011

Over the recent financial crisis the loans to customers trend, the quality deterioration of loans to customers portfolios and the related income effects showed relevant heterogeneities by bank size. This paper, based on individual and consolidated financial statements data from about 500 Italian banks in the period between 2008 and 2011, investigates the significance of the bank size and of the main characteristics of the intermediation model in affecting the lending activity of banks in terms of loans to customers trend. Upcoming researches will deepen the analysis, investigating the significance of the bank size and of the main intermediation model features in explaining the loans to customers quality and the related main income effects. The overall aim is to verify if the heterogeneity showed in the loans to customers trend, in the quality deterioration of loans to customers portfolios and in the main income effects by bank size is effectively significant and to what extent it could be explained by the differences that could be identified in the main features of the intermediation model adopted by banks.