Abstract
Using a combination of qualitative and quantitative methods, this article shows that since the 1990s, greater competition in Italy's banking industry has pushed commercial banks to develop some of the institutions of relationship lending (RL) typical of coordinated economies, namely to develop closer relationships with firms. While these developments do not amount to full-fledged RL, our findings have, first, implications for the assessment of institutional developments in Italy's political economy, providing evidence of increasing coordination against accounts, emphasizing stability or the disarticulation of existing institutional relations, and second, they qualify broader theoretical arguments on institutional change in national varieties of capitalism. Against standard arguments, the article suggests that increased competition can lead to tighter rather than looser coordination among economic actors. Finally, and more speculatively, the article presents some preliminary evidence that the commercial banks’ turn to RL might be contributing to the polarization of the Italian economy.
| Language | English |
|---|---|
| Pages | 553-572 |
| Number of pages | 20 |
| Journal | Review of International Political Economy |
| Volume | 25 |
| Issue number | 4 |
| Early online date | 11 Jun 2018 |
| DOIs | |
| Publication status | Published - 2018 |
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Keywords
- Banking
- coordinated market economies
- corporate governance
- financial institutions
- Italy
- mixed market economies
- polarization
- relationship lending
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}
A more German Italy? Competition and the development of relationship lending. / Stolfi, Francesco.
In: Review of International Political Economy, Vol. 25, No. 4, 2018, p. 553-572.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - A more German Italy? Competition and the development of relationship lending
AU - Stolfi, Francesco
PY - 2018
Y1 - 2018
N2 - Using a combination of qualitative and quantitative methods, this article shows that since the 1990s, greater competition in Italy's banking industry has pushed commercial banks to develop some of the institutions of relationship lending (RL) typical of coordinated economies, namely to develop closer relationships with firms. While these developments do not amount to full-fledged RL, our findings have, first, implications for the assessment of institutional developments in Italy's political economy, providing evidence of increasing coordination against accounts, emphasizing stability or the disarticulation of existing institutional relations, and second, they qualify broader theoretical arguments on institutional change in national varieties of capitalism. Against standard arguments, the article suggests that increased competition can lead to tighter rather than looser coordination among economic actors. Finally, and more speculatively, the article presents some preliminary evidence that the commercial banks’ turn to RL might be contributing to the polarization of the Italian economy.
AB - Using a combination of qualitative and quantitative methods, this article shows that since the 1990s, greater competition in Italy's banking industry has pushed commercial banks to develop some of the institutions of relationship lending (RL) typical of coordinated economies, namely to develop closer relationships with firms. While these developments do not amount to full-fledged RL, our findings have, first, implications for the assessment of institutional developments in Italy's political economy, providing evidence of increasing coordination against accounts, emphasizing stability or the disarticulation of existing institutional relations, and second, they qualify broader theoretical arguments on institutional change in national varieties of capitalism. Against standard arguments, the article suggests that increased competition can lead to tighter rather than looser coordination among economic actors. Finally, and more speculatively, the article presents some preliminary evidence that the commercial banks’ turn to RL might be contributing to the polarization of the Italian economy.
KW - Banking
KW - coordinated market economies
KW - corporate governance
KW - financial institutions
KW - Italy
KW - mixed market economies
KW - polarization
KW - relationship lending
UR - http://www.scopus.com/inward/record.url?scp=85048376853&partnerID=8YFLogxK
U2 - 10.1080/09692290.2018.1480514
DO - 10.1080/09692290.2018.1480514
M3 - Article
VL - 25
SP - 553
EP - 572
JO - Review of International Political Economy
T2 - Review of International Political Economy
JF - Review of International Political Economy
SN - 0969-2290
IS - 4
ER -