ABSTRACT
This research represents a theoretical contribution and a preliminary quantitative analysis on the credit cooperative banks (BCCs) in Italy. This study helps us to understand the context and the main business in which these banks operate. The sample analysed includes 264 Italian BCCs and data were extracted from Bankscope, which is a database containing comprehensive information on financial companies in Italy. The aim is to show that the BCCs are relevant in the Italian banking sector and enhance growth and value-creation for the local community in which they operate thanks to their activities. To do that, two indicators (the profit margin and return on equity [ROE]) were compared to see how they have changed over the years. Furthermore, by calculating the Pearson correlation ratio between profit/loss and net banking income of each year, this research analyses the possible correlation of net banking income to the profitability of the banks, in order to assess the effects of a policy carried out by corporate governance to face the difficulties that the banking system has been going through.
