02 October 2015

What will be the cost of capital increases for unlisted banks?

The role of cost of capital for unlisted banks is becoming increasingly important as part of the consolidation process expected to take place in the Italian banking sector over the next few years. The results of the SREP may have a decisive influence on mergers and groupings among major unlisted banks, and any requests for capital add-ons could result in these banks turning to the market to increase their capital base.

29 September 2015

Business models under the watchful eye of the supervisory mechanism 

One of the pillars of the Supervisory Review and Evaluation Process (SREP) is business model analysis. Three distinct business models (retail, investment, and diversified) seem to be emerging in Europe; in recent years retail banks, characterised by a traditional asset and liability structure, have shown resilient profitability in the face of a changing macroeconomic and financial environment.

25 August 2015

Why has Puglia performed better than Sicily in spending European Union Structural Funds?

Kara Wilson (kwilso67@jhu.edu)
Puglia and Sicily are two regions of Southern Italy that have shown significantly disparate performances in the use of EU Structural Funds because of different needs and priorities taken into consideration by the two regions.

11 August 2015

Beneath the Official GDP: A Deeper View of China’s Economic Slowdown

michele.burattoni@prometeia.com, Xiaolin Su (xsu5@jhu.edu)
GDP growth in China has declined to 7% in the second quarter of 2015. Besides the official data release, some other macroeconomic indicators suggest a more difficult situation of China’s economic growth. Keqiang index has kept falling from 2014 onwards and domestic demand is weak as both investments and consumption year-on-year growth are decreasing. Perhaps the decreasing amount of imports is the most direct clue that Chinese economy is slowing down and shows the potential influence on the global economy.

Image Credits: Yiorgos GR / Shutterstock.com
05 August 2015

The Greek systemic risk and the Euro area stock markets: how much does it cost to the investors?

giacomo.tizzanini@prometeia.com, Xiaoxiao Zhang (xiaoxiaozhang6@gmail.com)
In the aftermath of the recent financial crisis, the Greek crisis is having a significant effect on European peripheral countries’ stock market returns, especially in Italy.

24 July 2015

Low Foreign Capital in China’s Stock Market, Now; Limited Financial Spillover Effects, Then

xiaolin.su@prometeia.com, lorena.vincenzi@prometeia.com
The sudden collapse of the stock market in China in July has caused great losses for millions of investors. While China has achieved substantial progress in capital account liberalization, the international investment position suggests that the amount of foreign portfolio investment still remains small as capital controls are relatively heavy in the securities and bond markets. In light of this, the spillover effect of the stock crisis from China is limited.

08 June 2015

“Be content to do what your father did: if nothing else, you will not be a scoundrel”

An analysis of the main channels of intergenerational transmission of economic conditions: education, sector of activity and type of occupation, reveal a strong persistence between generations. Between 2000 and 2012 in Italy 51.7% of the children of graduate fathers are themselves graduates; 40% of the children of fathers employed in the public sector are employed in the same sector, and 56.7% of the children of blue collars are themselves blue collars.

05 June 2015

Italian banks: An obstacle course to contain costs

During crisis years, Italian banks used costs toprotect profitability, but in 2014 the cost optimisation process came to ahalt. Without extraordinary interventions, cost reduction margins are limitedbecause significant efforts have already been made and because complianceexpenses have increased, and so has the need to invest in business development.

29 May 2015

The Italian human capital, undermined by population decline and a low-quality school system

Enduring economic recovery in the medium term will require Italy to increase productivity. Job productivity also depends on the extent to which we succeed in increasing the skills of a population undergoing deep transformations as a result of decline and ageing.

26 May 2015

Jobless productivity growth: the productivity of work… without work

Italy has not yet recovered pre-crisis workproductivity levels, unlike our European partners (including Spain). Why notus? What sectors should we push to achieve a relaunch?

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