Banking Management in Italy
International Review of Economics and Business, Vol. XXIX, Nos. 10-11, pp. 946-953, 1982
Posted: 28 Sep 2005
A comparative analysis of management systems in Italy focused on the application of the principles of modern theory of management reveals the existence of a wide gap between the banking sector and the industrial sector, even if considerable differences are noticed among firms within both these sectors. Comparing companies of similar size (with the exclusion of domestic companies associated to foreign multinationals), Italian banks appear to have adopted new managerial techniques and coherent organizational structures with a lag of no less than ten years in respect to industrial concerns. Such a phenomenon, however, is not peculiar to the Italian context since it may be observed in other European countries and in the United States as well. The cause of this lags to be found in the difficulty to introducing modern tools in a complex banking management and, first of all, in market conditions. In fact, banking business is characterized by low competitiveness. Limiting the analysis to the Italian banking system and taking managerial innovation as a parameter, banks can be classified as follows: (1) foreign banks, which generally have adopted modern management techniques in order to conform to the managerial system of the parent company; (2) large size banking institutions which have introduced innovations following advise of international consulting firms; (3) banks which have adopted some modern tools for imitation without integrating them into the firm system; (4) small and local niche-banks which operate following traditional managerial system.
Keywords: Banking management
JEL Classification: G20, G21
Suggested Citation: Suggested Citation