International Money Markets: Eurocurrencies

Battilossi, Stefano

doi:10.1007/978-981-13-0596-2_57

Cited by 2 publications

(1 citation statement)

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“…The Eurodollar market was also blamed for systemic instability. 3 Furthermore, as Michael Moran argued, the Eurodollar market helped undermine the regulatory state, leading to the deregulation wave of the 1970s and 1980s. 4 Historical accounts of the origins of the Eurodollar market stress the pioneering role played by British clearing, merchant, and overseas banks in developing the market in the second half of the 1950s.…”

Section: Introductionmentioning

confidence: 99%

Banking and Eurodollars in Italy in the 1950s

Balaban¹

2022

Enterp. Soc.

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This article challenges current interpretations of the rise of the Eurodollar market. It argues that rather than being the exclusive innovation of British banks, the Eurodollar market had also Italian origins. Foreign-currency lending in Italy in the 1950s was characterized by competitive behavior. I explain the accumulation of Eurodollar deposits by Italian banks as resulting from the fact that nonresident foreign-currency deposits were not subject to reserve requirements. Furthermore, I discuss the attitudes of the Bank of Italy regarding the financing of foreign-currency credits with nonresident dollar deposits (Eurodollars) and compare the Eurocurrency liabilities of Italian banks vis-à-vis those of the City of London. The comparison facilitates an approximate estimation of the size of the Eurocurrency market in the late 1950s and, even more importantly, a recalibration of the view that the City of London was the dominant Eurodollar player from the outset.

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Section: Introductionmentioning

confidence: 99%