Resumen de Italian banking foundations: the path from banking holding company to an innovative form of �private welfare�

Paolo Baroli, Claudia Imperatore, Rosella Locatelli, Marco Trombetta

• Acknowledging the peculiarity of Italian Banking foundations in the international panorama, this study examines their dual role as banks� shareholders and philanthropic institutions sustaining local development and social aims. We review the historical evolution of legal framework of Italian banking Foundations from holding companies for their originating banks to autonomous non-profit entity devoted to socially valuable projects and investments. Even if Italian Law required boosted a progressive separation of the banking foundation from their �conferred bank�, our empirical analysis of 88 Italian Banking Foundations for the period 2001-2012 suggest that they did no achieve the expected independence. The existence of such enduring linkage between the two entities has relevant and negative implications on the diversification of investments, financial structure, profitability and, hence, on the ability of Banking Foundations to pursue their institutional activity.