Small Italian popular banks for small and medium-sized enterprises: evaluations of their performance

The study analyses the Italian cooperative banks that have maintained the cooperative form between 2013 and 2023, in a context characterised by the 2015 reform of the sector, the pandemic crisis and increasing digitisation. With statistical analysis (ANOVA and Tukey-Kramer), the dynamics of growth, profitability and capitalisation were examined and the territorial differences between the three macro-areas of the country (north, centre, south and islands). In particular, the trend of total assets, profit margin and Tier 1 ratio was studied. The results show a fair amount of capital resilience and some performance heterogeneity, with critical issues localised in some areas. However, cooperative banks are essential in supporting small and medium-sized enterprises and diversifying the banking system. This has theoretical implications for prudential governance and practical implications for regulatory policies. Small cooperative banks can be a credible alternative to banking concentration, strengthening the economic and social cohesion of the territories.