1st Edition

Bank Profitability and Interest Rates An Endogenous Money Theory Perspective

By Riccardo Zolea Copyright 2026
166 Pages 12 B/W Illustrations
by Routledge

166 Pages 12 B/W Illustrations
by Routledge

In recent years, many financial and monetary issues have been clarified and explained by the post-Keynesian theory, but some open questions remain on the functioning of the bank and the role of bank profitability in interest rate determination and distributive conflict. The book identifies a banking production cycle and thus clarifies the role of deposits, loans and capital for the (single)... Read more

 Preface by Roberto Ciccone

 Introduction

1 A functional analysis of the banking industry

2 Literature review on the relationship between interest rate, bank profitability and the general profit rate

3 A new interpretation of the relationship between the interest rate and the profitability of the banking industry

4 Distributive insights

Conclusions   

Appendix A. The best methodology for calculating the income of the banking sectors

Appendix B. From the originate-to-hold to the originate-to-distribute         

References

Biography

Riccardo Zolea is currently a junior assistant professor (RTDA) in political economy at the Department of Law at the University of Naples Federico II. He earned his PhD in Economics from Roma Tre University in 2023. He won the Paolo Leon Thesis Prize 2020, the Pierangelo Garegnani (PhD) Thesis Prize 2023 and the STOREP 2023 Award. He has published papers in Review of Political Economy, Journal of Post Keynesian Economics, Italian Economic Journal, and International Journal of Political Economy; chapters in Elgar books; encyclopaedia entries and some 20 other articles in Italian economic journals (Moneta e Credito, Economia e Politica, Tigor and Menabò di Etica ed Economia).