Standardization in Bank Lending: Institutional, Organizational, and Financial Issues (I Processi Di Standardizzazione Della Funzione Creditizia Degli Intermediari Bancari: Aspetti Istituzionali, Organizzativi E Finanziari)

Rivista Italiana di Ragioneria e di Economia Aziendale (Rirea), Rome, No. 11/12, pp. 596-607, November-December 2012

Posted: 1 Feb 2013

See all articles by Enzo Scannella

Enzo Scannella

University of Palermo - d/SEAS

Date Written: November 1, 2012

Abstract

This paper aims to point out how standardization and financial innovation are putting under pressure the traditional economics of banking.

It is argued that the progressive standardization and information technology innovation, with special reference to internal rating systems, risk management techniques, and regulatory constraints, have been leading bank lending toward new business models. The increasing role of internal ratings, credit scorings, and hard information in the banking intermediation process have enlarged the organizational and strategic differences between transaction-based banking and relationship-based banking. The structure of this paper is as follows. Section 1 outlines the general context of the study. Section 2 considers the standardization process in the credit assessment phase. Section 3 considers the impact of standardization on the organizational structure of banking firms, credit operations of banks, and bank business models. Section 4 concludes.

Keywords: standardization, lending, rating, bank, risk management, financial innovation

JEL Classification: G20, G21, M10, M20, M21

Suggested Citation

Scannella, Enzo, Standardization in Bank Lending: Institutional, Organizational, and Financial Issues (I Processi Di Standardizzazione Della Funzione Creditizia Degli Intermediari Bancari: Aspetti Istituzionali, Organizzativi E Finanziari) (November 1, 2012). Rivista Italiana di Ragioneria e di Economia Aziendale (Rirea), Rome, No. 11/12, pp. 596-607, November-December 2012. Available at SSRN: https://ssrn.com/abstract=2209679

Enzo Scannella (Contact Author)

University of Palermo - d/SEAS ( email )

Viale delle Scienze, edificio 13
Palermo, 90124
Italy
+3909123895305 (Phone)
+39091489346 (Fax)

HOME PAGE: http://www.enzoscannella.com

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