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Managing factoring in banking groups

Author

Listed:
  • Schwizer, Paola
  • Mattarocci, Gianluca

Abstract

On the market for factoring services independent suppliers coexhist with companies affiliated with banking groups. The last ones can be oriented in their decision processes by the policies of their parent company, usually a bank. They could also benefit from synergies among the different units of the group. The main benefits are linked to cost reduction, better skill-based resources allocation and a higher amount of financial coverage. If such interdependencies are found and developed, factors belonging to banking groups could attain a competitive advantage towards independent intermediaries. To assess the impact of the group structure we have to evaluate the degree of substitutability between factoring and other financial services supplied by the group, the synergy effects that could arise in each step of the production and delivery processes and eventually organizational challenges faced by the group. In our analysis we find evidence of complementarity among factoring and other financial products, we consider the possibile sinergies in some steps of the production process and we propose a methodology to assess the level of group cohesion and the kind of control exercised by the parent company.

Suggested Citation

  • Schwizer, Paola & Mattarocci, Gianluca, 2006. "Managing factoring in banking groups," MPRA Paper 2132, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:2132
    as

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    File URL: https://mpra.ub.uni-muenchen.de/2132/1/MPRA_paper_2132.pdf
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    References listed on IDEAS

    as
    1. Mirowski,Philip, 2002. "Machine Dreams," Cambridge Books, Cambridge University Press, number 9780521772839, March.
    2. Mirowski,Philip, 2002. "Machine Dreams," Cambridge Books, Cambridge University Press, number 9780521775267, March.
    3. Per Bak & Simon F. Norrelykke & Martin Shubik, 1998. "The Dynamics of Money," Research in Economics 98-11-102e, Santa Fe Institute.
    4. Gemunu H. Gunaratne & Joseph L. McCauley, 2002. "A theory for Fluctuations in Stock Prices and Valuation of their Options," Papers cond-mat/0209475, arXiv.org.
    5. A. Meltzer & Peter Ordeshook & Thomas Romer, 1983. "Introduction," Public Choice, Springer, vol. 41(1), pages 1-5, January.
    6. A. P. Thirlwall, 1983. "Introduction," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 5(3), pages 341-344, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    factoring; group organizations; institutional models;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L89 - Industrial Organization - - Industry Studies: Services - - - Other

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