The gap between the growth rates of large and small banche popolari is explained in part by the difference in the intensity of their relationship with firms and local communities, since this tends to weaken progressively the more banks grow, open up to the market and expand their range of operations.
Today I will discuss these housing market imbalances: their causes and the risks they present. I will also touch on policies that could assist in reducing the current imbalances. But first, let’s recap housing market developments over the past year. 2.