Federal Reserve Policy Statement on Rental of Residential Other Real Estate Owned Properties
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Compared to Germany, the gross income of Italian banks is relatively large, but so are
their operating costs (Figure 3). In both countries, the two time series show a negative
trend, but in Italy the decrease in costs more than compensates the decrease in gross in-
come.
The negative trend in Italy’s gross income is driven by its shrinking interest income (Fig-
ure 4), a trend also observed in many other European countries. However, this effect was
countered by a marked increase in non-interest income. This suggests that the Italian
banking reforms fostered the banks’ non-interest activities. However, this has more to do
with the lifting of banking...
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Federal Reserve Policy Statement on Rental of Residential Other Real Estate Owned Properties
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Federal Reserve Policy Statement on Rental of Residential Other Real Estate Owned Properties
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