Business Models for Strategic Innovation

6Profitability of the Italian credit cooperative banks

Giovanni Ossola, Guido Giovando and Chiara Crovini

Introduction

The banking system of the Credit Cooperatives in Italy finds its origins in the last quarter of 1800. Since their inception these credit cooperative institutions have been closely linked to the local communities in which they were established.

The earliest forms of credit cooperative in Italy were represented by the rural population and artisans, who, inspired by Christian values, played a key role in stimulating humble groups of rural people, especially farmers and craftsmen, to obtain loans on terms more favourable than those applied to traditional banks.

Since then, Rural and Artisan banks have maintained a very close relationship ...