Table Of ContentPalgrave Macmillan Studies in Banking and Financial Institutions
Series Editor: Professor Philip Molyneux
The Palgrave Macmillan Studies in Banking and Financial Institutions are
international in orientation and include studies of banking within particular
countries or regions, and studies of particular themes such as Corporate Banking,
Risk Management, Mergers and Acquisitions, etc. The books’ focus is on research
and practice, and includes up-to-date and innovative studies on contemporary
topics in banking that will have global impact and influence.
Titles include:
Yener Altunbas¸, Blaise Gadanecz and Alper Kara
SYNDICATED LOANS
A Hybrid of Relationship Lending and Publicly Traded Debt
Yener Altunbas¸, Alper Kara and Öslem Olgu
TURKISH BANKING
Banking under Political Instability and Chronic High Inflation
Elena Beccalli
IT AND EUROPEAN BANK PERFORMANCE
Paola Bongini, Stefano Chiarlone and Giovanni Ferri (editors)
EMERGING BANKING SYSTEMS
Vittorio Boscia, Alessandro Carretta and Paola Schwizer
COOPERATIVE BANKING: INNOVATIONS AND DEVELOPMENTS
Santiago Carbó, Edward P. M. Gardener and Philip Molyneux
FINANCIAL EXCLUSION
Allessandro Carretta, Franco Fiordelisi and Gianluca Mattarocci (editors)
NEW DRIVERS OF PERFORMANCE IN A CHANGING FINANCIAL WORLD
Violaine Cousin
BANKING IN CHINA
Franco Fiordelisi and Philip Molyneux
SHAREHOLDER VALUE IN BANKING
Hans Genberg and Cho-Hoi Hui
THE BANKING CENTRE IN HONG KONG
Competition, Efficiency, Performance and Risk
Carlo Gola and Alessandro Roselli
THE UK BANKING SYSTEM AND ITS REGULATORY AND SUPERVISORY
FRAMEWORK
Elisabetta Gualandri and Valeria Venturelli (editors)
BRIDGING THE EQUITY GAP FOR INNOVATIVE SMEs
Munawar Iqbal and Philip Molyneux
THIRTY YEARS OF ISLAMIC BANKING
History, Performance and Prospects
Kimio Kase and Tanguy Jacopin
CEOs AS LEADERS AND STRATEGY DESIGNERS
Explaining the Success of Spanish Banks
M. Mansoor Khan and M. Ishaq Bhatti
DEVELOPMENTS IN ISLAMIC BANKING
The Case of Pakistan
Mario La Torre and Gianfranco A. Vento
MICROFINANCE
Philip Molyneux and Munawar Iqbal
BANKING AND FINANCIAL SYSTEMS IN THE ARAB WORLD
Philip Molyneux and Eleuterio Vallelado (editors)
FRONTIERS OF BANKS IN A GLOBAL WORLD
Anastasia Nesvetailova
FRAGILE FINANCE
Debt, Speculation and Crisis in the Age of Global Credit
Dominique Rambure and Alec Nacamuli
PAYMENT SYSTEMS
From the Salt Mines to the Board Room
Catherine Schenk (editor)
HONG KONG SAR’s MONETARY AND EXCHANGE RATE CHALLENGES
Historical Perspectives
Andrea Schertler
THE VENTURE CAPITAL INDUSTRY IN EUROPE
Alfred Slager
THE INTERNATIONALIZATION OF BANKS
Noël K. Tshiani
BUILDING CREDIBLE CENTRAL BANKS
Policy Lessons for Emerging Economies
Palgrave Macmillan Studies in Banking and Financial Institutions
Series Standing Order ISBN 978-1-4039-4872-4
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Basingstoke, Hampshire RG21 6XS, England
Cooperative Banking:
Innovations and
Developments
Edited by
Vittorio Boscia
Alessandro Carretta
Paola Schwizer
Editorial matter and selection © Vittorio Boscia, Alessandro Carretta and
Paola Schwizer 2009
Individual chapters © their respective authors 2009.
Softcover reprint of the hardcover 1st edition 2009 978-1-4039-9669-5
All rights reserved. No reproduction, copy or transmission of this
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First published 2009 by
PALGRAVE MACMILLAN
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ISBN 978-1-349-54563-6 ISBN 978-0-230-23578-6 (eBook)
DOI 10.1057/9780230235786
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A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Co-operative banking: innovations and developments/[edited by]
Vittorio Boscia, Alessandro Carretta, Paola Schwizer.
p. cm.—(Palgrave Macmillan studies in banking and financial
institutions)
Includes index.
1. Banks and banking, Cooperative. I. Boscia, Vittorio. II.
Carretta, Alessandro. III. Schwizer, Paola.
HG2035.C6 2009
334’.2—dc22 2008041042
10 9 8 7 6 5 4 3 2 1
18 17 16 15 14 13 12 11 10 09
Contents
List of Figures vii
List of Tables viii
Notes on Contributors ix
About the Editors xi
Preface xii
1 Introduction 1
V. Boscia, A. Carretta and P. Schwizer
Part One Overview of Cooperative Banking
2 T he Theory and Experience of Cooperative Banking 9
V. Boscia and R. Di Salvo
3 I nstitutional Models, Role of Shareholders
(Member and Customers), Governance 40
P. Schwizer and V. Stefanelli
4 M erger and Acquisition in the Cooperative
Banking Sector 60
V. Stefanelli
5 Outsourcing Policies in Cooperative Banking 73
A. Carretta
6 S hareholder Value and Efficiency
of Cooperative Banks in Europe 80
F. Fiordelisi
7 Rating Methodology for Cooperative Banks 133
C. Giannotti
Part Two S pecific Features and Innovations
in Cooperative Banking
8 The Impact of Basel 2 on Cooperative Banking 159
S. Cosma
v
vi Contents
9 Internal Controls and Cooperative Banks 191
V. Stefanelli
10 The Impacts of IAS–IFRS on Cooperative Banking 209
M. Cotugno
11 Concluding Remarks 228
V. Boscia, A. Carretta and P. Schwizer
Index 233
Figures
6.1 Economic Value Added (EVA) for banks:
Our calculation procedure 86
6.2 Input and outputs used in estimating cost efficiency
in European banking 103
10.1 Balance Sheet: The different aims 212
vii
Tables
4.1 Effects of a concentration on the cooperative bank
involved in the operation 67
6.1 T he number of banks in samples used for estimating
efficiency with SFA and DEA, 1995–2002 87
6.2 Profitability and shareholder value created
in French banking systems, 1995–2002 89
6.3 Profitability and shareholder value created
in German banking systems, 1995–2002 94
6.4 Profitability and shareholder value created
in Italian banking systems, 1995–2002 108
6.5 SFA cost X-efficiency mean levels
in European banking, 1995–2002 114
6.6 DEA cost efficiency mean levels
in European banking, 1995–2002 117
7.1 Determinants of the propensity to support banks 137
7.2 Support ratings 137
7.3 Individual ratings 138
7.4 Ratings assigned in the presence of a formal
support mechanism 143
10.1 Financing system 211
10.2 The classification of financial assets and
financial liabilities 216
viii
Notes on Contributors
Simona Cosma is Lecturer in Banking and Finance at the University
of Salento (Italy). She holds a Ph.D. in Banking and Finance from the
University of Rome Tor Vergata. Her research interests and publica-
tions include risk management and bank organization and marketing.
She has been also coordinator and lecturer in professional training
courses for banks, and has acted as a consultant for the Italian Bankers’
Association.
Email: [email protected]
Matteo Cotugno is a Postdoctoral Fellow in Banking and Finance in the
Department of Management at University of Bologna. He holds a Ph.D.
in Banking and Finance from the University of Rome Tor Vergata. His
research interests and publications include corporate and investment
banking, financial accounting, performance management and measure-
ment in banking.
Email: [email protected]
Roberto Di Salvo, economist, M.Phil. in Banking and Finance, is
Deputy General Manager at Federcasse – Credito Cooperativo. He super-
vises several offices dealing with economic research, financial regula-
tion analysis and implementation, international relations and strategic
projects. He is also editor of the quarterly journal Cooperazione di Credito
and frequently writes papers and essays on banking and cooperative
issues.
Email: [email protected]
Franco Fiordelisi (MA, Ph.D.) is Professor in Banking and Finance at
the Faculty of Economics ‘Federico Caffè’ of the University of Rome
III, Italy. He is a member of the academic board for Ph.D.s in Banking
and Finance at the University of Rome Tor Vergata. He is also Visiting
Research Fellow at the University of Essex, UK. His main research inter-
est is the economics of the banking and other financial institutions
focusing on efficiency, productivity and shareholder value creation. His
research has been published in the Journal of Banking and Finance, Applied
Economics, OMEGA - The International Journal of Management Science
ix
