A banking system of European dimensions

Since the 1990s, the Italian banking system has undergone a profound transformation. An intense process of concentration and the increase in the average dimension of Italian credit companies together with an enhanced range of financial services on offer to customers has boosted profitability and competitiveness, against a background of progressive liberalisation of financial markets.

In 2001, the Italian credit system was ranked third in the Euro zone, in absolute terms, holding 10.5% of the total credit value of European member states. The commercial banks operating in Italy represent 11.9% of the total number of banks operating in the Euro zone. The average size of Italian banks is more or less in line with other major European countries. The liberalisation of banking services has increased demand throughout Italy. In a decade, the number of branches has almost doubled and today, 3/4 of Italy´s 8,000 municipalities have a bank.

In recent years, Italian banking has grown at a sustained pace: bank transactions have increased from 59.8% of GDP in 1995 to 77.9% in 2002. The financing provision for the economic system has paid more attention to the corporate sector, its most important sector of business (65.5% of total bank financing in 2002, as compared to a European average of 47%). Small and medium sized companies have been the recipients of 50% all credit granted to the private manufacturing sector (financial companies excluded).