When broadband comes to banks: Credit supply, market structure, and information acquisition
Government
Banks have long relied upon cutting-edge technologies to deliver products and improve efficiency, but there is limited evidence on the impact of fast internet on banking activities, particularly in lending. This column examines the effect of broadband adoption on lending in Italy from 1998 to 2008. Broadband boosts credit supply and branch efficiency by improving the efficiency with which banks collect, process, and transmit borrower information. Banks can more tightly monitor borrowers and
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