Interbank Market and Liquidity Distribution during the Great Financial Crisis: the e-MID Case

The paper analyzes the behavior of the Italian e-MID unsecured interbank market during the recent financial turmoil, highlighting some peculiarities occurred in the last two years. The aim of the research is to investigate how the operative solutions recently adopted by the e-MID may represent a viable answer in order to improve the liquidity distribution. For this purpose, the paper examines the interbank transactions within the euro area since the current financial crisis started, both in the e-MID and in the over-the-counter interbank markets, pointing out if the introduction of an anonymous and collateralized segment in the e-MID market since February 2009 may improve the liquidity distribution within the euro area.