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Banks, Regions and Development After the Crisis and Under the New Regulatory System

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Alessandrini, P., Fratianni, M., Papi, L., Zazzaro, A. Banks, Regions and Development After the Crisis and Under the New Regulatory System. Credit and Capital Markets – Kredit und Kapital, 49(4), 535-561. https://doi.org/10.3790/ccm.49.4.535
Alessandrini, Pietro; Fratianni, Michele; Papi, Luca and Zazzaro, Alberto "Banks, Regions and Development After the Crisis and Under the New Regulatory System" Credit and Capital Markets – Kredit und Kapital 49.4, 2016, 535-561. https://doi.org/10.3790/ccm.49.4.535
Alessandrini, Pietro/Fratianni, Michele/Papi, Luca/Zazzaro, Alberto (2016): Banks, Regions and Development After the Crisis and Under the New Regulatory System, in: Credit and Capital Markets – Kredit und Kapital, vol. 49, iss. 4, 535-561, [online] https://doi.org/10.3790/ccm.49.4.535

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Banks, Regions and Development After the Crisis and Under the New Regulatory System

Alessandrini, Pietro | Fratianni, Michele | Papi, Luca | Zazzaro, Alberto

Credit and Capital Markets – Kredit und Kapital, Vol. 49 (2016), Iss. 4 : pp. 535–561

15 Citations (CrossRef)

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Author Details

Prof. Pietro Alessandrini, MoFiR and Università Politecnica delle Marche, Ancona, Italy

Prof. Michele Fratianni, Indiana University, MoFiR and Università Politecnica delle Marche, Ancona, Italy

Prof. Luca Papi, Università Politecnica delle Marche, Ancona, Italy and MoFiR

Prof. Alberto Zazzaro, Università di Napoli Federico II, Università Politecnica delle Marche, Ancona, Italy, MoFiR and CSEF

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Abstract

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One of the most evident consequences of the Great Financial Crisis has been a rapid expansion of banking regulation. We argue that the burden of the new regulatory system is asymmetric, driving small banks to the „too-small-to-survive" zone, while reinforcing the „too-big-to-fail" protection for big banks. The asymmetric effect on banking structure produces related asymmetries on firms and regional economies, in light of the fact that small firms and peripheral regions are highly dependent on bank credit and need strategic proximity of banking structures. Finally, our review of the literature on different countries and on different periods of time, including the financial crisis years, suggests the importance of a differentiated banking model when firms and regions are heterogeneous. There is no obvious optimal size of bank.