{
  "title": "Bank Consolidation, Efficiency, and Profitability in Italy",
  "publication": "IMF Working Papers, July 27, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2017/07/27/bank-consolidation-efficiency-and-profitability-in-italy-45063",
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  "summary": "This paper examines the case for efficiency-driven banking sector consolidation in Italy, evaluates its potential effects on profitability, and discusses policy options to facilitate a consolidation process that is as effective as possible.",
  "sections": [
    {
      "heading": "Summary of findings",
      "content": "- Bottom-up analysis of 386 Italian banks suggests:\n  - Profitability is expected to improve as the economy gradually recovers.\n  - Operational efficiency gains are nonetheless needed to restore large parts of the banking system to healthy profitability.\n- Banking system consolidation can play a role in facilitating operational efficiency gains.\n- Consolidation is likely to be most effective as part of a comprehensive strategy that includes complementary reforms to clean up bank balance sheets.\n- Cross-country experience indicates efficiency gains are more likely to follow consolidations where careful viability analyses are conducted of the synergies and operational improvements that can be achieved."
    },
    {
      "heading": "Policy options and considerations",
      "content": "- Facilitate efficiency-driven consolidation processes that are:\n  - Supported by complementary balance-sheet cleanup measures.\n  - Based on careful viability analyses of expected synergies and operational improvements.\n- Design consolidation strategies as part of a comprehensive reform package rather than as a standalone measure."
    },
    {
      "heading": "Key statistics, subjects, and keywords",
      "content": "- Number of banks analyzed: 386\n- Pages: 25\n- Volume: 2017\n- Issue: 175\n- Series: Working Paper No. 2017/175\n- DOI: https://doi.org/10.5089/9781484309261.001\n- Stock No: WPIEA2017175\n- ISBN: 9781484309261\n- ISSN: 1018-5941\n- Author: Miss Anke Weber\n- Publication date: July 27, 2017\n- Subject: Banking, Commercial banks, Cooperative banks, Credit, Financial institutions, Money, Nonperforming loans, Stocks\n- Keywords: bank consolidation, bank reform, banking system, banks, Commercial banks, Cooperative banks, Credit, Global, joint stock, Nonperforming loans, popolare bank, profitability, return on equity, Stocks, WP\n\nSource: IMF Working Paper \"Bank Consolidation, Efficiency, and Profitability in Italy\" by Miss Anke Weber, July 27, 2017.\n\n---\n\n Content in this bundle\n\n- Bank Consolidation, Efficiency, and Profitability in Italy, WP/17/175, July 2017\n  - Bank Consolidation, Efficiency, and Profitability in Italy, WP/17/175, July 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Bank Consolidation, Efficiency, and Profitability in Italy, WP/17/175, July 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/07/27/bank-consolidation-efficiency-and-profitability-in-italy-45063"
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    "Authors: Anke Weber",
    "Published: July 27, 2017",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484309261.001",
    "Bottom-up analysis of 386 Italian banks suggests:",
    "Banking system consolidation can play a role in facilitating operational efficiency gains.",
    "Consolidation is likely to be most effective as part of a comprehensive strategy that includes complementary reforms to clean up bank balance sheets.",
    "Cross-country experience indicates efficiency gains are more likely to follow consolidations where careful viability analyses are conducted of the synergies and operational improvements that can be achieved.",
    "Facilitate efficiency-driven consolidation processes that are:",
    "Design consolidation strategies as part of a comprehensive reform package rather than as a standalone measure.",
    "Number of banks analyzed: 386",
    "Pages: 25",
    "Volume: 2017",
    "Issue: 175",
    "Series: Working Paper No. 2017/175",
    "DOI: https://doi.org/10.5089/9781484309261.001",
    "Stock No: WPIEA2017175",
    "ISBN: 9781484309261",
    "ISSN: 1018-5941",
    "Author: Miss Anke Weber",
    "Publication date: July 27, 2017",
    "Subject: Banking, Commercial banks, Cooperative banks, Credit, Financial institutions, Money, Nonperforming loans, Stocks",
    "Keywords: bank consolidation, bank reform, banking system, banks, Commercial banks, Cooperative banks, Credit, Global, joint stock, Nonperforming loans, popolare bank, profitability, return on equity, Stocks, WP",
    "**Bank Consolidation, Efficiency, and Profitability in Italy, WP/17/175, July 2017**"
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