In general, the banche popolari have responded to increasing competitive pressure by reviewing and revising their strategies. Large-scale banks have been created, with diversified production, complex group structures, and establishments abroad as well as at home. Small banks of limited operational complexity continue to exist alongside them. While more and more marked differences have emerged within the category, regulations have remained largely the same.
We must consider whether this framework is still appropriate to the changed needs of banks, investors and clients and to the aims of the supervisory authority. 1. The role of banche popolari in the development of Italy’s banking system  Italy’s banking system has undergone profound changes in the last decade: in size, in manner of operation and in organizational structure.