Journal of
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Archive » April 2026 » Banking consolidation between competition, stability and innovation

Banking consolidation between competition, stability and innovation

Gian Luca Trequattrini
April 2026 - n. 4
Keywords: Banche, consolidamento, innovazione
Jel codes: G21, G8, O33

Experience has shown that highly fragmented banking systems can be more vulnerable to margin squeezes and excessive risk-taking. More concentrated industries may be more robust at the individual level, but they present systemic risks and problems related to the «too big to fail» phenomenon. In this context, digitization and the entry of FinTech and BigTech are redefining competitive boundaries, increasing pressure on traditional models, and making economies of scale and scope increasingly relevant. A very complex balance emerges, in which the point is not to choose between competition and stability but to understand how to balance them, also considering the high regulatory and technological costs.

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