Socio-environmental context and banking risk: a regional scale analysis

Abstract

The contribution analyses “Socio-environmental content and banking risk: a regional scale analysis”, with attention to the context, reading tools and policy implications. Other empirical studies at regional level highlight a positive relationship between access to credit and mutual trust between banks and enterprises (Bonaccorsi di Patti, 2009; Moro e Fink, 2013; Borri et al., 2014; Mistrulli e Vacca, 2015). This positive report is also confirmed by other researches, which, however, measure the effects of the socio-environmental context on the efficiency and/or risk of banks considering, for empirical analyses, samples of cooperative credit companies. Among the various models elaborated, the following variables were statistically significant on the risk index (RISK): reference is made to the well-known Moran index for the quantification of spatial variability. In view of the strong spatial variability of risk (RISK) present at the regional level, the geographical model (GWR) was estimated to verify the non-station of coefficients compared to the OLS model (Table 1). The increase in rates, as is known in economic literature, generates a vicious phenomenon by the name of “adverse selection”.

Keywords

banking system; environment; poverty and inequalities; European Union; Half-day; Italy

JEL codes

G21; G28; R58