A stochastic model for loan interest rates
Abstract. The topic of interest rate restrictions and their legal implications represents a delicate subject about which a recent inventory of EU authorities was developed. This is aimed to inspection of the so called principle of "good morals" against usury for the Member States.
The most recent Italian law regulating legal rates of interest applied in loans, sets a threshold under which loan interest rates have to remain for being nonusurious, in the sense that if the loan rate lies outside the threshold, it becomes a usury rate and has to be prosecuted.






