A Contribution on Relationship Banking. Economic, Anthropological and Mathematical Reasoning, Empirical Evidence from Italy

Desogus, Marco and Casu, Elisa (2020): A Contribution on Relationship Banking. Economic, Anthropological and Mathematical Reasoning, Empirical Evidence from Italy. Published in: International Research Journal of Finance and Economics No. 178 (2020): pp. 25-49.

Abstract

This research concerns the tightness of the economy and demonstrates the need for procedural reforms between banks and companies for more relational and infra-cooperative structures. Among these corrections, we suggest that banks and companies be considered as unicum bank-enterprises and monetary-financial and productive activity as two faces of the same coin, rather than distinct functions of separate entities. With the rapid and increasingly “liquid” evolution—to put it in the Bauman (2000) context—of financial intermediation in large groups and fintech, it is with a certain audacity that we propose more “solid” action. Following an anthropological and economic-behavioral survey on the inherent human qualities of cooperation and relationality, we situate these two qualities in economic actions and particularly in the relationship between financing institutions and producers. This heterodox notion is supported by an analysis of Italian performance data on financing trends, bank non-performing loans and the number of companies in the production sector, which reflects the progressive deterioration of the economy. From there, we apply a mathematical model to finalize our hypothetical reform. We finally recommend a strategy for the gradual implementation of our conclusions, based on an examination of existing cooperative banking intermediation practices.

• Item Type: MPRA Paper
• Language: English
• Keywords: Cooperative Credit: SME Lending; Relationship Banking; Economic Systems; Financial Stability; Credit Market Structure
• Subjects: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; P - Economic Systems > P4 - Other Economic Systems > P43 - Public Economics ; Financial Economics

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