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Archive » February 2021 » Small banks’ Mergers and Acquisitions in Italy. Size or specialization matters?

Small banks’ Mergers and Acquisitions in Italy. Size or specialization matters?

Alessandro Carpinella
February 2021 - n. 2
Keywords: Piccole banche, fusioni, acquisizioni
Jel codes: G30, G34

A deep-rooted leit motiv sees the banking sector in need of concentration. An analysis of the 16 M&A transactions that have affected, since 2014, the smallest banks in Italy seems to indicate that the problem is not so much that of the excessive number of banks, but that of the poor profitability of the traditional business model, of a generalist type. In fact, most of the transactions analyzed do not lead to a reduction in the number of banks through consolidation in larger groups aiming to extract economies of scale, but to the growth and bankization of financial intermediaries with profitable business models, a strong entrepreneurial structure, a clear specialization in Personal Finance, Npls, Smart Lending, Wealth Management. All transactions took place without public or interbank support, and show that a reasonable balance has been struck between the regulator's and financial operators' demands.

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