The reform of the Italian Cooperative banking sector

The European Cooperative banking sector contributes to the heterogeneity of the banking sector. This research provides an initial overview of the cooperative principles and possible governance models through a qualitative and legislative approach on the one hand, and on the other it offers a quantitative analysis of several performance indicators. These indicators were calculated through the collection of the balance sheets for a period of four years. The study then moves to the Italian Cooperative banking sector, which is characterized by a high portion of NPLs and credit insolvency, due to macroeconomic effects that have been persistent in the Italian economy. Hence an analysis of a sample of cooperative banks is provided, through a descriptive analysis of selected variables and by means of possible effects on bank lending behaviour. Finally, the reform of the cooperative banking sector is illustrated, along with the possible effects on the new implemented system, in the light of the COVID-19 pandemic.