01971cas a2200241 a 4500 AALejournalIMF017787 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484309261 1018-5941 BD-DhAAL BD-DhAAL Weber, Anke. Bank Consolidation, Efficiency, and Profitability in Italy / Anke Weber. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (25 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the case for efficiency-driven banking sector consolidation in Italy, evaluates its potential effects on profitability, and discusses policy options to facilitate a consolidation process that is as effective as possible. A bottom-up analysis of 386 Italian banks suggests that while profitability is expected to improve as the economy gradually recovers, operational efficiency gains are nonetheless needed to restore large parts of the banking system to healthy profitability. Banking system consolidation can play a role in facilitating such efficiency gains, but its effectiveness is likely to be most as part of a comprehensive strategy that includes complementary reforms to clean up bank balance sheets. Cross-country experience indicates that efficiency gains are more likely to follow consolidations where careful viability analyses are conducted of the synergies and operational improvements that can be achieved. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2017/175 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/175/001.2017.issue-175-en.xml IMF e-Library