Template-Type: ReDIF-Paper 1.0
Author-Name:  Rachele Anna Ambrosio
Author-Email:  rambrosio@unisa.it
Author-Workplace-Name: Dipartimento di Scienze Economiche e Statistiche, Università degli Studi di Salerno
Author-Name:  Paolo Coccorese
Author-Email:  coccorese@unisa.it
Author-Workplace-Name: Dipartimento di Scienze Economiche e Statistiche, Università degli Studi di Salerno
Title:  Bad loans and de novo banks: evidence from Italy
Abstract: The existing empirical evidence suggests that there is a “winner’s curse” for banks entering new markets. Actually, it has been assessed that de novo banks generally experience higher bad loans rates than mature banks for about ten years. We investigate whether this persistence has characterized the Italian banking industry in the period 1995-2010, and find that theory predictions are confirmed by empirical results. This evidence is robust to different model specifications. We also show that cooperative credit banks (CCBs) perform better than the others banks, due to their focus on local markets.
Creation-Date: 2014-10
Publication-Status: Published in Working Papers, November 2014, pages 1-19
File-URL:http://www.dises.unisa.it/RePEc/sep/wpaper/3_233.pdf
File-Format:Application/pdf
File-Function:First version, 2014
Number:3_233
Classification-JEL: G21; L10; L13 
Keywords:Banking; Competition; Market structure; Conduct
Handle:RePEc:sep:wpaper:3_233