Banche italiane: che sofferenze!

Non-performing loans (npl) and distressed loans are a hot issue of the Italian banking system. The Governor of the Italian Central Bank recently showed optimism about the recovery rate of these loans, based on two recent empirical studies. In this paper, a rigorous measurement of recovery rate is discussed, highlighting some flaws of the cited studies. Therefore, assuming the large dispersion among Italian banks in terms of credit quality, profitability and npl incidence on tangible equity, a cluster analysis is conducted on a sample of 450 banks in 2015, identifying six different clusters, in a continuum from “peaches” to “lemons” à la Akerlof. The emerging map does not appear so reassuring.

Banche: fusioni e worst practices nella valutazione

This article’s objective is twofold: a) to argue that mergers and acquisitions among banks do not always advantage the financial system’s stability or the merging banks’ profitability (against the current storytelling that M&As are panacean); b) to highlight some widespread worst practices in valuing aggregation synergies as well as the share exchange of merging banks, showing the ample range of discretionary/manoeuvrable values in capital valuation.

Quando il bue dice cornuto all’asino….ovvero la riforma delle Banche Popolari

This paper summarizes some criticisms against the recent Italian reform that imposed that the largest cooperative banks must to be transformed in limited companies. The main are: better governance and business model of the mutual ownership, cooperative banks’ positive impact on system stability and their importance/resilience worldwide. It deepens the discussion, by analysing financial data of Italian banks from Mediobanca-R&S dataset and showing that limited company model is not better than cooperative one in terms of performance and risk; therefore, the 2015 reform doesn’t seem to be justified by the past empirical evidence.