An Evaluation Of Italian Banks In The Period Of Financial Distress

Abstract

This paper evaluates the performance of Italian banks during the 2006-2009 period. Banks are analysed according to their business models and their main activities. The analysis focuses on both cooperative and commercial banks. By contrast to commercial banks, Italian cooperative banks do not perceive profit-making as a principle itself. These banks have been able to accumulate capital and provide credit to customers despite the ongoing crisis. On average, they manage their loan portfolio better than commercial banks. Findings suggest that cooperative banking in Italy should be encouraged due to its positive contribution to economic development and possibly financial stability.