Logo
Munich Personal RePEc Archive

Multilevel empirics for small banks in local markets

Aiello, Francesco and Bonanno, Graziella (2015): Multilevel empirics for small banks in local markets.

[thumbnail of MPRA_paper_64399.pdf]
Preview
PDF
MPRA_paper_64399.pdf

Download (937kB) | Preview

Abstract

Banking is increasingly a-spatial. However, the environment matters for small banks. Indeed, they are embedded in narrowed markets and hence benefit from proximity to their member-customers. By referring to multilevel approach, this article aims at measuring how much the performance of Italian mutual-cooperative banks is determined by both geographical (provincial level) and individual characteristics (small bank level). The effect of local markets explains 28.27% of bank heterogeneity in the empty multilevel model and 33% in the most extended model. Moreover, it is found that bank efficiency increases with market concentration and demand density and decreases with branching in local markets.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.