The Peculiarity of the Cooperative and Mutual Model: Evidence From the European Banking Sector

Pacelli, Vincenzo; Pampurini, Francesca; Labini, Stefania Sylos

doi:10.1142/s2282717x19400012

Cited by 8 publications

(4 citation statements)

References 58 publications

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“…Groeneveld (2016) came to the same conclusion for the Netherlands. Paceli et al (2019) in a study of mutual banks in Italy, Germany, France, and Spain, concluded that European mutual banks have a higher degree of efficiency than commercial banks. Efficiency is related to the efficiency of traditional lending, the degree of prudence in provisioning for credit risks, and the level of liquidity.…”

Section: Literature Review Of Crisis Results Over the Banking Systemsmentioning

confidence: 99%

Consequences of the Financial Crisis and Capital Adequacy in Greek Banks

Karafolas,

Stergiou

2023

JFRM

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Distinct from other countries, in Greece, the global financial crisis continued during the decade 2010 and became an economic crisis resulting in a recession. It resulted from implementing measures aimed at reducing Greece's high public debt, as the country had reached an agreement with the European Union and the International Monetary Fund on public borrowing. Unlike other countries, public debt is at the core of the Greek crisis. The economic crisis has primarily affected the Greek banking system, capital banks, and specialized credit institutions such as cooperative banks. The economic depression during the decade was reflected in the banks' activities and results, while in the middle of the decade, it led to a considerable increase in nonperforming loans. In addition to these consequences, most Greek banks suffered from the halving of the value of Greek bonds in 2011, as they were involved in financing the Greek government. The generalization of these phenomena distinguishes the Greek case from other banking systems while limiting the argument of poor management for the outcomes of the banking crisis in Greece. Banks' difficulty meeting the capital requirements set out in the Basel Regulations III was a vital component of the banking crisis. As a result of these difficulties, some banks were unable to meet the requirements and were forced to close or be sold by their parent banks. In the case of a particular category of banks, the so-called economically significant banks, there was substantial public support for capitalization, contrary to the other banks, which had to raise the necessary capital themselves. This article examines the impact of capital requirements on bank development, both for capital and cooperative banks, and also attempts some comparative accounts between them.

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Section: Literature Review Of Crisis Results Over the Banking Systemsmentioning

confidence: 99%

Consequences of the Financial Crisis and Capital Adequacy in Greek Banks

Karafolas,

Stergiou

2023

JFRM

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“…Makinen and Jones, 2015; Spulbar, Nitoi and Anghel, 2015). Recently, Pacelli, Pampurini and Labini (2019) have compared the cost efficiencies of cooperative and commercial banks in Italy, Germany, France and Spain between 2011 and 2016, thus capturing the European sovereign debt and NPL crises. They find that the business model of cooperative and mutual banks is strong during bad times, exhibiting higher efficiency levels than commercial banks.…”

Section: Literature and Hypothesis Developmentmentioning

confidence: 99%

The Beauty of Being Involved: The Case of Cooperative Banks

Fiordelisi

Grimaldi²,

Lopez

et al. 2022

British J of Management

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Is greater stakeholder engagement associated with greater stability? We provide readers with novel empirical evidence that this is indeed the case. Cooperative banks (where stakeholders are involved in the business by law) are an excellent case to study the association between stakeholder engagement and stability. Focusing on Italy, we show that cooperative banks differ substantially in risk-taking from each other, and these differences are mostly related to the engagement of stakeholders. A greater overlap between shareholders, borrowers and depositors is associated with lower non-performing loans, suggesting that greater stakeholder engagement reduces problems of asymmetric information and bank risk appetite.

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“…By improving screening and monitoring of borrowers, these features enhance the efficiency and effectiveness of credit cooperatives to serve marginal borrowers (Grillo, 2013). According to Pacelli et al (2019), mutual banks' ability to assess risks accurately results from territorial proximity, which allows local savings to be collected. Part of the profits of mutual banks are reinvested back into the community to promote the sustainable development of their territories.…”

Section: Mutual Cooperative and Profitoriented Banksmentioning

confidence: 99%

Basel accords and banking inefficiency: Evidence from the Italian local market

2022

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Using data for Italy from 1994 to 2015, we appraise the nexus between Basel II and III accords and both the cost and the profit inefficiency of profit‐oriented and mutual cooperative banks. Our analysis further deals with the effects of the regulation in different market structures. To assess the efficiency of the two types of banks under scrutiny, a stochastic frontier approach has been proposed. The evidence reported in this paper indicates that the regulatory framework of the Basel accords had heterogeneous effects on the efficiency of Italian banking institutions. Specifically, Basel II is associated with a contraction in the profit inefficiency and an increase in the cost inefficiency for mutual cooperative banks. On the other hand, Basel III worsened the profit inefficiency, though it is found to reduce the profit inefficiency of mutual cooperative banks, with no significant impact on cost inefficiency. Furthermore, once we control for the degree of market competition, the effects of the regulation are shown to be statistically insignificant. The advent of the 2008 recession and the application of the revenue inefficiency do not alter the main findings. There is also some evidence of spatial effects of the Basel II regulation at the LMA level.

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The Peculiarity of the Cooperative and Mutual Model: Evidence From the European Banking Sector

Cited by 8 publications

References 58 publications

Consequences of the Financial Crisis and Capital Adequacy in Greek Banks

Consequences of the Financial Crisis and Capital Adequacy in Greek Banks

The Beauty of Being Involved: The Case of Cooperative Banks

Basel accords and banking inefficiency: Evidence from the Italian local market

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