The Italian banking system is now in a position to compete in Europe. It is expanding its presence in Central and Eastern Europe. Italian banking groups are smaller than the major euro-area intermediaries; the indicators of operating profitability and efficiency are nonetheless better than the average for the banking systems of the area.
The integration of the groups formed during the last ten years is at an advanced stage as regards corporate structure, operating procedures and information systems. Further combinations between large groups within the Italian banking system would entail serious problems in terms of the creation of dominant positions and a substantial reduction in competition in a number of regions and provinces.