The Corporate Governance of the Italian Cooperative Banks (Banche Cooperative O Fondazioni Bancarie? Corporate Governance Nelle Banche Di Credito Cooperativo) (Italian)
Posted: 1 May 2010 Last revised: 9 May 2010
Date Written: November 1, 2001
The Italian credit unions (banche di credito cooperativo, or Bcc) can be defined as a hybrid between cooperatives and not-for-profit organizations, since their directors’ main task is to guarantee the concession of loans to all the economic categories represented amidst the owners. Following the recent liberalization of the Italian Banking market, Bcc are currently pursuing bigger dimensions, mainly through mergers and acquisitions. This process is causing the modification of their corporate governance towards a pure not-for-profit model, although the 1993 Italian Banking Act prevents the existence of such banks, whose directors are responsible to parties not interested in the economic efficiency of the bank. More in general, Bcc share the the typical problems of all cooperatives, that the cost of monitoring management increases with the number of owners.
Keywords: Cooperative banking, corporate governance, competition, mergers and acquisitions
JEL Classification: G21, G21, L44
Suggested Citation: Suggested Citation