L'attività internazionale delle banche italiane: una sintesi degli ultimi dieci anni

This paper examines the developments of the Italian banking system during the Nineties from two related points of view: net external position and degree of internationalisation, i.e. branches and subsidiaries abroad. These themes seem particularly interesting in the light of the widespread belief that the euro area will significantly increase banking competition and cross-border operations in coming years. We find two major forces driving banks' external net position: the growth in loans to domestic borrowers and the convergence in interest rate levels across European countries. The development of foreign branches and subsidiaries has been influenced by two counterbalancing forces; the big banking groups reduced their presence abroad while some medium-sized banks opened their first branches; the focus of foreign branches and subsidiaries has been on specific segments of banking activities, very often exploiting "localization" advantages. Despite the improvement in the Nineties, Italian banks have tended to show a relatively low degree of internationalisation compared with the main European banking system.