Financial development and local growth: evidence from highly disaggregated Italian data

Destefanis, Sergio; Barra, Cristian; Lavadera, Marco Lubrano

doi:10.1080/09603107.2014.941529

Cited by 31 publications

(39 citation statements)

References 29 publications

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“…When the geographic stratification of the Italian territory has been taken into account, results show that banks located in Centre-Southern regions are less cost efficient than those located in Northern regions confirming again what has already been found for the Italian banking system (e.g. Destefanis et al 2014). The stratification of banks by dimension has also been taken into account, showing that minor banks have higher cost efficiency than other banks; this result is mainly driven by the fact that a high proportion of minor banks is composed of cooperative banks.…”

Section: Performances Of the Banking Sectorsupporting

confidence: 81%

“…Destefanis et al. ). The stratification of banks by dimension has also been taken into account, showing that minor banks have higher cost efficiency than other banks; this result is mainly driven by the fact that a high proportion of minor banks is composed of cooperative banks.…”

Section: Empirical Evidencementioning

confidence: 99%

“…The inclusion of environmental variables in a one-stage stochastic frontier is strongly approved in the recent literature (Lozano-Vivas et al (2002), Hasan et al (2009) and Destefanis et al (2014). In order to control for geographical location of branches, we include branch density (BD), taken at LMA level, being the number of branches per square kilometre.…”

Section: Variablesmentioning

confidence: 99%

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Bank Performance, Financial Stability and Market Concentration: Evidence From Cooperative and Non‐cooperative Banks

Barra

Zotti

2018

Ann Public Coop Econ

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Relying upon highly territorially disaggregated data taken at labour market areas, the paper explores the relationship between bank performances and financial stability of the banking system taking into account the role of market concentration. The z‐score is used as financial stability indicator, while the performance of financial intermediaries is measured using a parametric method recently developed (Kumbhakar et al. 2014). The empirical evidence shows a positive relationship between bank performance and financial stability and supports the ‘concentration–stability’ view for non‐cooperative banks only when concentration is measured on the whole sample of banks. Differences in the performance–stability nexus seem to depend more on the type of banks rather than different levels of market concentration. Higher market concentration of cooperative banks affects systemic stability by reducing the z‐scores of non‐cooperative banks, supporting the hypothesis that the presence of non‐profit‐maximizing entities can pull down stability of other financial institutions.

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Section: Performances Of the Banking Sectorsupporting

confidence: 81%

Section: Empirical Evidencementioning

confidence: 99%

Section: Variablesmentioning

confidence: 99%

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Bank Performance, Financial Stability and Market Concentration: Evidence From Cooperative and Non‐cooperative Banks

Barra

Zotti

2018

Ann Public Coop Econ

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“…Nowadays, well-functioning financial markets and banking institutions are usually considered to be a condition favourable to economic growth (Diallo 2018;Belke et al 2016;Cevik et al 2016;Zhang et al 2016;Destefanis et al 2014;Roghanian et al 2012;Ferreira 2012;Balkevicius 2012;Waheed and Younus 2010). Banks, being among the most important participants in the financial system, play an important role in it.…”

Section: Introductionmentioning

confidence: 99%

Measuring the Efficiency in the Lithuanian Banking Sector: The DEA Application

Novickytė

Droždz

2018

IJFS

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Abstract:The purpose of this study is to examine the efficiency of the banks in Lithuania by employing the DEA method and evaluate bank performance in a low interest rate environment. The efficiency scores were calculated with a non-parametric frontier input-oriented DEA technique with the variable returns to scale (VRS) and the constant returns to scale (CRS) assumptions. Five alternative models with different input-output combinations were developed, based on production, profitability and intermediation dimensions. The main bank profitability measure-the return on assets (ROA) ratio-was employed to validate the results obtained using the DEA method. The Lithuanian bank's efficiency analysis based on the VRS assumption shows that better results are demonstrated by the local banks. The technical efficiency analysis based on the CRS assumption shows other results: the banks owned by the Nordic parent group and the branches have higher pure efficiency than local banks and have success at working at the right scale. Based on this, it stated that during the 2012-2016 period the larger Lithuanian banks (subsidiaries) applied a more appropriate business model than smaller (local) banks operating in Lithuania. Additionally, this research contributes to the scholarly literature in the field of determinants of bank business performance in concentrated markets dominated by foreign banks and, in particular, from one region.

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“…In brief, the mission of an MCB is to provide value for its members, encourage social cohesion, and promote sustainable growth in the area that it serves (Alessandrini et al 2009;Boscia and Di Salvo 2009). It is also noteworthy to say that much research empirically supports the hypothesis that small banks promote the growth of local economies (Berger et al 2004;Destefanis et al 2014;Meslier-Crouzille et al 2012;Usai and Vannini 2005).…”

Section: Introductionmentioning

confidence: 99%

Multilevel empirics for small banks in local markets

Aiello

Bonanno

2018

Papers in Regional Science

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Banking is increasingly a-spatial. However, the environment matters for small banks. Indeed, they are embedded in narrowed markets and hence benefit from proximity to their member-customers. By referring to multilevel approach, this article aims at measuring how much the performance of Italian mutual-cooperative banks is determined by both geographical (provincial level) and individual characteristics (small bank level). The effect of local markets explains 28.27% of bank heterogeneity in the empty multilevel model and 33% in the most extended model. Moreover, it is found that bank efficiency increases with market concentration and demand density and decreases with branching in local markets.JEL codes: G21, C13, D00, R19

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Financial development and local growth: evidence from highly disaggregated Italian data

Cited by 31 publications

References 29 publications

Bank Performance, Financial Stability and Market Concentration: Evidence From Cooperative and Non‐cooperative Banks

Bank Performance, Financial Stability and Market Concentration: Evidence From Cooperative and Non‐cooperative Banks

Measuring the Efficiency in the Lithuanian Banking Sector: The DEA Application

Multilevel empirics for small banks in local markets

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