The paper examines the long-term profitability of the Italian banking system (1965-2011), which has three interesting features: it has always been oriented to traditional intermediation; it underwent a significant process of privatization, consolidation and modernization; it proved to be very...

This paper examines the long-term profitability of the Italian banking system (1965–2012), which has three interesting features: it has always been oriented toward traditional intermediation; it underwent a significant process of privatization, consolidation and modernization; and it proved to...

Banks' activity is challenged by the macroeconomic, financial and regulatory environment emerging from the financial crisis. Slower economic growth, low interest rates, more stringent regulation on capital and liquidity, the need to decrease leverage for a number of banks, increased market...