Judicial reform and banks credit risk exposure
The aim of this paper is to examine the impact of the Judicial System Reform, which wasintroduced in Italy in 2012, on the efficiency of the judicial system and the exposure ofbanks to credit risk in terms of Non-performing loans. To this end, we apply a difference-in-differences approach, using a dataset that covers annual judicial proceedings from 2010to 2017, supplemented by bank balance sheet data. Our findings indicate that the reformhad a detrimental effect on both judicial efficiency and the NPL ratio. The negative impactis especially pronounced in courts that were previously more efficient, suggesting that thecourt mergers may have resulted in diseconomies of scale
FERRARA Antonella;
CANZIAN Giulia;
2025-10-24
WILEY
JRC132605
1468-0084 (online),
https://onlinelibrary.wiley.com/doi/epdf/10.1111/obes.12652,
https://publications.jrc.ec.europa.eu/repository/handle/JRC132605,
10.1111/obes.12652 (online),
Additional supporting files
| File name | Description | File type | |
|---|
