Competitive Advantages and Challenges in the Italian Cooperative Credit System
Journal title STUDI ECONOMICI
Author/s Mitja Stefancic
Publishing Year 2011 Issue 2010/102
Language English Pages 18 P. 89-106 File size 601 KB
DOI 10.3280/STE2010-102004
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Cooperative credit banks were established in the mid-19th century to overcome problems of opportunistic behaviour by borrowers. In Italy, they are currently playing a major role for the financial system and for the economy. They provide credit to individuals and households, as well as capital to small firms from sectors such as agriculture. These banks relate to a cooperative credit network that grants them an adequate level of competitiveness in the market. By effectively implementing democratic principles of governance and by focusing on relationship banking, they foster responsible behaviour, a crucial concept in times of crisis. This paper accounts for both the competitive advantages and the challenges faced by Italian cooperative credit banks. It suggests that a better understanding of their specifics would help to highlight the contribution of a sound cooperation to economics. Finally, it provides policy recommendations for a qualitative supervision of cooperative banks in order to increase the stability of the financial system.
Keywords: Italian cooperative credit banks, relationship banking, governance, challenges
Jel codes: G21, P13
Mitja Stefancic, Competitive Advantages and Challenges in the Italian Cooperative Credit System in "STUDI ECONOMICI " 102/2010, pp 89-106, DOI: 10.3280/STE2010-102004