Spain and Italy are other large countries where spreads on small loans, including business loans widened appreciably following the crisis, though with some reversal more recently (Figure 3). 4  BIS central bankers’ speeches  So, should there be a ceiling on interest spreads?
Control of retail interest rates by the Central Bank is not provided for in legislation, and I believe it should remain so. This will not come as a surprise to students of economics, accustomed to understanding the problems that can be caused by preventing the emergence of a market-clearing price. But I think that there is an important political economy dimension here.