Bank Consolidation Efficiency And Profitability In Italy

Author : Anke Weber
Publisher : International Monetary Fund
ISBN 13 : 1484313364
Total Pages : 25 pages
Book Rating : 4.67/5 ( download)

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Download or read book Bank Consolidation, Efficiency, and Profitability in Italy written by Anke Weber and published by International Monetary Fund. This book was released on 2017-07-27 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the case for efficiency-driven banking sector consolidation in Italy, evaluates its potential effects on profitability, and discusses policy options to facilitate a consolidation process that is as effective as possible. A bottom-up analysis of 386 Italian banks suggests that while profitability is expected to improve as the economy gradually recovers, operational efficiency gains are nonetheless needed to restore large parts of the banking system to healthy profitability. Banking system consolidation can play a role in facilitating such efficiency gains, but its effectiveness is likely to be most as part of a comprehensive strategy that includes complementary reforms to clean up bank balance sheets. Cross-country experience indicates that efficiency gains are more likely to follow consolidations where careful viability analyses are conducted of the synergies and operational improvements that can be achieved.

Author : Andreas Jobst
Publisher : International Monetary Fund
ISBN 13 : 147552756X
Total Pages : 34 pages
Book Rating : 4.68/5 ( download)

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Download or read book Profitability and Balance Sheet Repair of Italian Banks written by Andreas Jobst and published by International Monetary Fund. This book was released on 2016-08-19 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The profitability of Italian banks depends, among other factors, on the strength of the ongoing economic recovery, the stance of monetary policy, and the beneficial effects of current and past reforms, notably to address structural obstacles to resolving nonperforming loans (NPLs) and to foster banking sector consolidation. Improved profitability would enable banks to raise capital buffers and accelerate the cleanup of their balance sheets. This paper investigates quantitatively the current and prospective earnings capacity of Italian banks. A bottom-up analysis of the 15 largest Italian banks suggests that the system is on the whole profitable, but that there is significant heterogeneity across banks. Many banks should become more profitable as the economy recovers, but their capacity to lend depends on the size of their capital buffers. However, a number of smaller banks face profitability pressures, even under favorable assumptions. There is thus a need to push ahead decisively on cleaning up balance sheets, including through cost cutting and efficiency gains.

Author : José Garrido
Publisher : International Monetary Fund
ISBN 13 : 1498357032
Total Pages : 33 pages
Book Rating : 4.36/5 ( download)

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Download or read book Cleaning-up Bank Balance Sheets written by José Garrido and published by International Monetary Fund. This book was released on 2016-07-11 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: To stabilize and bring down nonperforming loans (NPLs) in the Italian banking system, the Italian authorities have been implementing a number of reforms, aimed among others at speeding up insolvency and enforcement proceedings, strengthening bank corporate governance, cleaning up balance sheets, and facilitating bank consolidation. This paper examines the Italian banking system’s NPL problem, which ties up capital, weighing on bank profitability and authorities’ economic reforms. It argues for a comprehensive approach, encompassing economic, supervisory, and legal measures. The authorities’ reforms are important steps toward this end. The paper describes measures that could further support their actions.

Author : MissEva Gutierrez
Publisher : International Monetary Fund
ISBN 13 : 1451869363
Total Pages : 20 pages
Book Rating : 4.61/5 ( download)

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Download or read book The Reform of Italian Cooperative Banks written by MissEva Gutierrez and published by International Monetary Fund. This book was released on 2008-03-01 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper argues that the governance framework of cooperative banks may hamper raising capital, particularly at time of distress, complicating the bank resolution process ?specially for large banks?and may not provide adequate incentives to control banks' management. Reforms should preserve the positive characteristics that make cooperative banks a valuable addition to the Italian financial system, while providing enough flexibility and incentives for banks to adopt a suitable governance model. Our empirical analysis suggests that cooperative banks may enjoy a higher degree of monopoly power than commercial banks. Thus, regulations and the enforcement of antitrust policies should ensure a leveled playing field.

Author : Paulo Flavio Nacif Drummond
Publisher :
ISBN 13 :
Total Pages : 48 pages
Book Rating : 4.44/5 ( download)

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Download or read book Italy written by Paulo Flavio Nacif Drummond and published by . This book was released on 2007 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper assesses the degree of banking competition and efficiency in Italy--over time as well as compared to that in other countries, such as France, Germany, Spain, the United Kingdom, and the United States. The paper finds competition in the Italian banking sector has intensified in loan and deposit markets in recent years, but banks still operate in a highcost, high-income system, particularly with respect to retail/services, and efficiency gains have yet to fully materialize. The degree of competition falls within the range of estimates for a set of comparator countries. Greater contestability should act as a powerful force to drive banks to become more competitive and efficient. Competition policy will also continue to be an important consideration, both in enforcing Italy's antitrust laws and in ensuring that the procedures for dealing with weak banks and other merger and acquisition reviews focus on stability and competition objectives

Author : International Monetary Fund. Monetary and Capital Markets Department
Publisher : International Monetary Fund
ISBN 13 : 1513537628
Total Pages : 63 pages
Book Rating : 4.27/5 ( download)

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Download or read book Italy written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2020-03-20 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Financial System Stability Assessment paper on Italy highlights that substantial progress has been made in recent years in strengthening the financial sector, however, important weaknesses remain. Bank capitalization and asset quality have improved considerably but are still below the European Union average and the financial sector has large exposures to the Italian sovereign. The financial sector faces important vulnerabilities and a challenging baseline outlook. The sector is highly dependent on the European Central Bank’s Targeted Longer-Term Refinancing Operations. Profitability is also still low, particularly in segments of small and mid-sized banks. This reflects in part weak economic growth in Italy over the past decade, as well as high structural operating costs, unsustainable business models and corporate governance weaknesses. Solvency stress tests indicate that many banks with material aggregate total asset share continue to be vulnerable to an adverse scenario. Efforts should focus on further enhancing banks’ capitalization, operational efficiency, governance, and business models. Specifically, the authorities should consider more escalated corrective measures for weak banks, utilizing the full gamut of their toolkit, to ensure that banking sector weaknesses do not linger, and costs are contained.

Author : Dean F. Amel
Publisher :
ISBN 13 :
Total Pages : 68 pages
Book Rating : 4.12/5 ( download)

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Download or read book Consolidation and Efficiency in the Financial Sector written by Dean F. Amel and published by . This book was released on 2002 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Anke Weber
Publisher : International Monetary Fund
ISBN 13 : 148430926X
Total Pages : 25 pages
Book Rating : 4.61/5 ( download)

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Download or read book Bank Consolidation, Efficiency, and Profitability in Italy written by Anke Weber and published by International Monetary Fund. This book was released on 2017-07-27 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the case for efficiency-driven banking sector consolidation in Italy, evaluates its potential effects on profitability, and discusses policy options to facilitate a consolidation process that is as effective as possible. A bottom-up analysis of 386 Italian banks suggests that while profitability is expected to improve as the economy gradually recovers, operational efficiency gains are nonetheless needed to restore large parts of the banking system to healthy profitability. Banking system consolidation can play a role in facilitating such efficiency gains, but its effectiveness is likely to be most as part of a comprehensive strategy that includes complementary reforms to clean up bank balance sheets. Cross-country experience indicates that efficiency gains are more likely to follow consolidations where careful viability analyses are conducted of the synergies and operational improvements that can be achieved.

Author : J. S. Lopez
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.55/5 ( download)

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Download or read book Italian Mutual Banks written by J. S. Lopez and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Elisabetta Fiorentino
Publisher :
ISBN 13 :
Total Pages : 44 pages
Book Rating : 4.51/5 ( download)

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Download or read book The Effects of Privatization and Consolidation on Bank Productivity written by Elisabetta Fiorentino and published by . This book was released on 2016 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Italian and German banking systems shared similar characteristics early in the 1990s but have evolved in different directions since then: Italy privatized its publicly-owned banks while Germany has maintained a large share of state-owned savings banks. Contemporaneously, banks in both markets engaged heavily in mergers and acquisitions. We analyze how these activities have affected banks' productivity in the period 1994-2004, differentiating between technical change, efficiency change and scale economies. We find that privatized banks experienced a significant increase in productivity, especially if they subsequently merged with other banks. German banks were still able to increase their productivity through consolidation.