Reforming the Corporate Governance of Italian Banks

September 25, 2014

Preview Citation

Format: Chicago

Nadège Jassaud. Reforming the Corporate Governance of Italian Banks, (USA: International Monetary Fund, 2014) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Sound corporate governance is essential for a well-functioning banking system and the integrity of financial markets. The paper discusses the corporate governance of Italian banks, its regulatory framework, and the specific challenges arising from the role played by foundations and large cooperatives. Although Italian banks have recently made progress in improving their corporate governance, more needs to be done. In this regard, further improvements should include: (i) strengthening further the existing banking regulations through stricter fit-and-proper rules for directors and controlling shareholders; (ii) implementing the new related party lending regulation with tightened definitions; (iii) strengthening oversight of foundations when they are the controlling shareholders in banks; and (iv) facilitating the transformation of large cooperatives into joint stock companies.

Subject: Banking, Commercial banks, Cooperative banks, Corporate governance, Economic sectors, Financial crises, Financial institutions

Keywords: Banca Monte dei Paschi di Siena, Banco Popolare, Bank Boards, Bank by-law, Bank capital, Bank dividend, Bank owner, Banking group, Bank's strategy, Cantonal bank, Commercial banks, Cooperative banks, Cooperatives, Corporate governance, Distressed assets, Europe, Foundation bank owner, Foundations, Global, Governance, Influences banks' behavior, MPS, Ownership structure, Profitability, Risk governance framework, WP

Publication Details

Pages:

31
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/181
Stock No:

WPIEA2014181
ISBN:

9781484387511
ISSN:

1018-5941

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