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Profit versus Non Profit: A Third Way? The Case of the Italian Mutual Cooperative Banks

Author

Listed:
  • Ivana Catturani

    (University of Trento)

  • Sandro Trento

    (University of Trento)

Abstract

The distinction between profit and non profit firms does not necessarily apply to some cooperative firms, such as the Italian mutual cooperative banks (MCBs). MCBs present a peculiar governance structure, a combination between a public company governance model and a non-profit one. The board of directors acts as a public-good administrator when it allocates the profits not only on the members’ community, but also on the local community. However, the governance of these banks may be affected by structural problems. This study aims at describing the governance structure of MCBs and its appropriateness given enlargement of the community of members.

Suggested Citation

  • Ivana Catturani & Sandro Trento, 2011. "Profit versus Non Profit: A Third Way? The Case of the Italian Mutual Cooperative Banks," Rivista di Politica Economica, SIPI Spa, issue 3, pages 83-112, JULY-SEPT.
    • Handle: RePEc:rpo:ripoec:y:2011:i:3:p:83-112
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    More about this item

    Keywords

    cooperative firm; mutualism; cooperative banks; corporate governance; Italian banking sector;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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