Size-based efficiency in the Italian banking system : an empirical review

This work reviews the Italian banking system, characterized in the past few decades by deep changes, mainly due to the new applicable bank legislation, to a progressive European integration, and to the natural decline of interest rates. In order to better exploit the growth of the capital market, banks undertook a significant number of mergers with other banks or brokerage companies. Thus the size of the banking institutions and their ability to diversify their offer to customers play a relevant role: a preliminary empirical review, with data referred to the years 1998 and 1999, tries to outline the scope and the consequences of this phenomenon.