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Market Structure and Financial Stability: the Interaction between Profit-Oriented and Mutual Cooperative Banks in Italy

Author

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  • Adalgiso Amendola

    (University of Salerno)

  • Cristian Barra

    (University of Salerno)

  • Marinella Boccia

    (University of Salerno)

  • Anna Papaccio

    (University of Salerno)

Abstract

In this study, we analyze the relation between market structure and financial stability both theoretically and empirically by considering two types of agents: profit-oriented banks and mutual cooperative banks in the context of Italy. The main findings show that under the condition that mutual cooperative banks are not dominated by borrowers, there is an inverted U-shaped relation in which a less concentrated market structure increases stability for both types of banks but a more concentrated market structure reduces it.

Suggested Citation

  • Adalgiso Amendola & Cristian Barra & Marinella Boccia & Anna Papaccio, 2021. "Market Structure and Financial Stability: the Interaction between Profit-Oriented and Mutual Cooperative Banks in Italy," Journal of Financial Services Research, Springer;Western Finance Association, vol. 60(2), pages 235-259, December.
    • Handle: RePEc:kap:jfsres:v:60:y:2021:i:2:d:10.1007_s10693-021-00360-1
    DOI: 10.1007/s10693-021-00360-1
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    More about this item

    Keywords

    Market structure; Financial stability; Profit-oriented banks; Mutual cooperative banks;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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