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Consolidation, Ownership Structure and Efficiency in the Italian Banking System

In: The Banks and the Italian Economy

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  • Marcello Messori

    (Dipartimento di Economia e Istituzioni)

Abstract

The paper refers to the processes of consolidation and privatization occurred in the Italian financial market during the nineties, in order to analyze their possible effects on efficiency, competition, and ownership reallocation of the banking system. The main results are that these two processes were accompanied by gains in the efficiency and competitiveness of the Italian market for traditional banking services, but they were unable to offset the drawbacks in the financial services offered to households and in the ownership structure of Italy's largest and medium-sized banking groups. In this last respect, the paper shows that banks mergers and acquisitions and privatization tightened the mesh of cross-shareholdings, and placed at the center of the consequent spiderweb of ownership a small number of major shareholders dominated by a peculiar nonmarket institution – that is, the Italian bank-derived foundations

Suggested Citation

  • Marcello Messori, 2009. "Consolidation, Ownership Structure and Efficiency in the Italian Banking System," Springer Books, in: Damiano Bruno Silipo (ed.), The Banks and the Italian Economy, chapter 0, pages 211-243, Springer.
    • Handle: RePEc:spr:sprchp:978-3-7908-2112-3_10
    DOI: 10.1007/978-3-7908-2112-3_10
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    Cited by:

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    3. Silvana Bartoletto & Bruno Chiarini & Elisabetta Marzano & Paolo Piselli, 2015. "Business Cycles, Credit Cycles and Bank Holdings of Sovereign Bonds: Historical Evidence for Italy 1861-2013," CESifo Working Paper Series 5318, CESifo.
    4. Bartoletto, Silvana & Chiarini, Bruno & Marzano, Elisabetta & Piselli, Paolo, 2019. "Business cycles, credit cycles, and asymmetric effects of credit fluctuations: Evidence from Italy for the period of 1861–2013," Journal of Macroeconomics, Elsevier, vol. 61(C), pages 1-1.
    5. Michal Jurek, 2014. "Role and impact of different types of financial institutions on economic performance and stability of the real sector in selected EU member states," Working papers wpaper36, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    6. Andreani, Ettore, 2003. "Corporate Control and the Financial System in Germany: Recent Changes in the Role of Banks," Thuenen-Series of Applied Economic Theory 37, University of Rostock, Institute of Economics.

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    More about this item

    Keywords

    Total Asset; Ownership Structure; Asset Management; Herfindahl Index; Banking Group;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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