From the universal banking to the universal banking: a reappraisal

Since Gerschenkron's path-breaking studies, universal banking is considered to be largely responsible for Italian industrialization in the ‘Giolittian era. By contrast, the economic miracle of the 1950s–1960s was not dependent on the banking system, nor does the recent return to universal banking in Italy appear related to satisfactory growth rates. The paper argues that, at least in the Italian experience, universal banking is not necessarily related to higher growth phases and that banks are not per se able to foster economic growth. Although regulation significantly affected the prevailing banking models, but per se it does not explain the performance of the banking system in terms of allocative efficiency, whereas macro-economic policies could have played a relevant part on their own in relation to investments and growth.