Title: Is there a relation between capital and ownership on bank performance? The German and Italian cases

Authors: Belinda Laura Del Gaudio; Claudio Porzio

Addresses: Department of Management and Quantitative Studies, University of Naples Parthenope, Via Generale Parisi, 13 Naples, 80133, Italy ' Department of Management and Quantitative Studies, University of Naples Parthenope, Via Generale Parisi, 13 Naples, 80133, Italy

Abstract: This paper examines the effects of capital on bank performance, considering the ownership structure using a large sample of German and Italian cooperative and commercial banks from 2006 to 2012. The determinants of performance are studied using a set of variables reflecting the bank's core business and bank-type characteristics, namely, total assets, dependency on funding and liquidity combined with capital and risk measures. The findings show that the ownership structure drives the impact of capital measures and liquidity on performance. The differences in the impact of capital strength among cooperatives and commercials could be derived from differences in capital formation and management. This paper includes implications for regulatory authorities, who should consider the latter in the definition of new regulatory sets.

Keywords: bank performance; cooperative banks; ownership; capital; business model.

DOI: 10.1504/IJGFI.2018.091477

International Journal of Governance and Financial Intermediation, 2018 Vol.1 No.1, pp.37 - 58

Received: 23 Feb 2017
Accepted: 21 Jun 2017
Published online: 02 May 2018 *