This paper provides an outline of both the competitive advantages and challenges currently faced by Italian cooperative credit banks. These banks play an important role for the stability of the financial system at the level of regions. They provide credit to individuals and households, as well...

Both the literature and public opinion consider cooperative banks as local banks, that is, socially embedded financial service providers. Their primary objective is to fund the local economy from locally collected deposits. To offset any possible disadvantage stemming from their lack of adequate...

This paper examines the impact of the bank orientation on classical banking business, distinguishing between shareholder and stakeholder banks, and analyzes the preconditions for positive social welfare effects from the existence of stakeholder banks. For this reason we develop a theoretical...

Financial theory indicates that low interest rates hamper credit risk and profitability, two interrelated components of banks' balance sheets. Using a simultaneous equations framework, we investigate the effects of euro area monetary easing on cooperative banks' performance depending on their...

An effective tool of economic development is found in microfinance and is believed to provide sustainable mechanism for poverty alleviation. The microfinance institutions across the world operate on a few established models. The studies indicate that the microfinance institutions have been able...

Why do banks squeeze their lending activity? is an oft-repeated question during the times of financial crisis. This study examines an emerging economy's banking system and contributes to the evolving body of literature on the topic by providing answers as to what causes the sluggish bank credit...

Through superior technology, financial technology (FinTech) firms may expand credit markets. Alternatively, consumers may substitute one credit provider for another, generating adverse selection problems for incumbent lenders. We analyze the unsecured consumer loan market and identify the...

We show that the liquidation value of collateral depends on who is pledging it. We employ transaction-level data on overnight repurchase agreements (repo) and loan-level credit registry data on corporate loans. We find that borrowers on the repo market pay a 2.6 basis points rate premium when...

This paper studies the extent to which increases in bank credit supply available for small and medium firms can foster formal employment in Mexico. We use a detailed dataset containing loan-level information for all loans extended by commercial banks to private firms in Mexico during the...

The current banking crisis highlights the challenges faced in the traditional lending model, particularly in terms of screening smaller borrowers. The recent growth in online peer-to-peer lending marketplaces offers opportunities to examine different lending models that rely on screening by...