IDEAS home Printed from https://ideas.repec.org/a/wsi/jfmmix/v12y2024i01ns2282717x23500068.html
   My bibliography  Save this article

The Efficiency Of The Network Organizational Structure Of Cooperative Banks

Author

Listed:
  • ANDREA VIOLA

    (School of Banking, Finance, and Insurance, Università Cattolica del Sacro Cuore, Italy)

Abstract

The paper proposes an empirical investigation of scale economies, scope economies, and market power of the network organizational structure of Italian cooperative banks. For 452 cooperative banks (and a control group of 223 commercial banks) over 2006–2018, empirical findings show that cooperative banks experienced cost economies of scale and scope, but they experienced scale diseconomies and constant scope economies on the revenue side. Unlike commercial banks, cooperative banks did not seem to benefit on the earnings side from increases in scale and diversification. Moreover, cooperative banks experience greater market power than commercial banks. Traditional advantages, in terms of network economies and relationship lending, are proven empirically to persist for the network organizational structure.

Suggested Citation

  • Andrea Viola, 2024. "The Efficiency Of The Network Organizational Structure Of Cooperative Banks," Journal of Financial Management, Markets and Institutions (JFMMI), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 1-26, June.
    • Handle: RePEc:wsi:jfmmix:v:12:y:2024:i:01:n:s2282717x23500068
    DOI: 10.1142/S2282717X23500068
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S2282717X23500068
    Download Restriction: Open Access
    File URL: https://libkey.io/10.1142/S2282717X23500068?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Cooperative banks; banking efficiency; organizational structure;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:jfmmix:v:12:y:2024:i:01:n:s2282717x23500068. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: https://www.worldscientific.com/worldscinet/jfmmi .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.