A New Governance for Banks: The Short- and Long-Term Drivers of the Italian Financial Sector Reform

in Volume 31 (2016): Issue 1 (Sep 2016): Governing under Constraint. Guest Editors: Maurizio Carbone and Simona Piattoni

This chapter investigates the reforms of some important and distinctive sectors of the Italian financial system: the banche popolari and the fondazioni bancarie. These reforms are particularly relevant in the list of events that have marked the year 2015 because they are inextricably intertwined with revisions in the EU supervisory and regulatory architecture and because they are an integral part of the broader government plan to revive economic growth after the fiscal crisis. In particular, the chapter analyzes the long- and short-term factors that set the stage for the reforms to take place. These include transformations in the large cooperative banks and the inaction of key parts of the domestic financial sector with regard to legislative and structural changes; competitive pressures deriving from the buildup of European financial integration; and the backing of domestic and international regulators such as the Bank of Italy, the IMF, and the EU Commission, among others.