In an increasingly cautious banking environment, Italy’s cooperative banks are reaffirming the centrality of local economic engagement. As credit becomes more selective and access to financing a more challenging path for businesses and families, a clear divide is emerging within the Italian banking system: that between commercial banks and the Banche di Credito Cooperativo (BCCs), or Cooperative Credit Banks.
Data released in late 2025 reveals a tightening of credit conditions for businesses across the Eurozone, exceeding previous expectations. The European Central Bank (ECB) attributes this primarily to concerns about economic prospects and a reduced risk appetite among institutions. This dynamic is not expected to be temporary; banks anticipate a further tightening of lending conditions for companies in the first subsequent quarter, a slight tightening for mortgages, and a more pronounced strengthening of restrictions on consumer credit. The overall picture is one of increasingly prudent financial supply, guided by standardized criteria and macroeconomic assessments.
However, observing the Italian credit market, this trend does not translate uniformly across the country. The BCCs continue to play a counter-cyclical role, maintaining a strong presence in sectors most exposed to restrictions from traditional bank credit. As of October 2025, gross loans to customers of the BCCs reached €142.8 billion, with particularly significant market shares where credit is most difficult to obtain: 23.1% of financing for artisan and small manufacturing businesses, 25.2% of credit for tourism activities, and 24.5% for agriculture and fishing.
These are not marginal niches, but central components of the real economy, often penalized when commercial banks tighten lending criteria. BCCs also cover 15.7% of loans to the construction and real estate sectors, 11.4% of those destined for commerce, and 10.2% of total financing to consumer families. This presence highlights a different philosophy of credit allocation, more linked to direct knowledge of the territories than solely to the logic of aggregate risk.
This difference is also explained by the operational model. The 216 BCCs, Rural Banks, and Raiffeisen Banks operate with 4,099 branches distributed throughout the national territory and represent the only bank present in 808 Italian municipalities. Their 1.5 million members are an integral part of local communities and contribute to orienting credit choices towards concrete support for the local economy.
While commercial banks, as highlighted by ECB data, respond to economic uncertainty with a general tightening of lending criteria, BCCs continue to support families and businesses, especially smaller ones, thanks to a total equity of €28.8 billion that allows for solidity and operational continuity. What we have is not a deviation from prudence, but a different way of applying it: evaluating not only the numbers, but also the stories, projects, and social resilience of the territories.
In a European context marked by a growing aversion to risk, the comparison of data highlights two distinct approaches to credit. On one hand, a banking system oriented towards restriction and standardization; on the other, a cooperative model that continues to guarantee access to financing and support the real economy, confirming that, even in credit, the difference is not merely theoretical, but measurable in figures.
The resilience of the BCC model is particularly noteworthy given broader trends in the Italian banking sector. Recent consolidation efforts, including the potential merger between Monte dei Paschi di Siena (MPS) and Mediobanca, aim to create larger, more robust banks capable of competing with European giants like Intesa Sanpaolo and UniCredit. , Ainvest reported that this consolidation is driven by regulatory pressures and economic recovery. However, these larger institutions often prioritize standardized risk assessments and may be less attuned to the specific needs of local economies.
The importance of local presence in credit issuance is further underscored by recent research. A study published in May 2025 examining the impact of digital transformation on Italian cooperative banks found that while home banking significantly influences deposit and consumer credit levels, the physical presence of cooperative bank branches remains crucial for credit issuance. This suggests that the traditional model of local engagement, embodied by the BCCs, continues to offer a valuable service that is not easily replicated by purely digital banking solutions.
the cooperative structure itself fosters a different relationship with customers. With members as stakeholders, BCCs are incentivized to prioritize long-term community development over short-term profits. This is particularly important in sectors like agriculture and tourism, where businesses often require tailored financing solutions and benefit from a close relationship with their bank.
The ongoing digitalization of the banking industry presents both opportunities and challenges for the BCCs. While embracing digital tools to improve efficiency and reach a wider customer base, they must also preserve their local presence and maintain the personal relationships that are at the heart of their business model. As the study from highlights, integrating digital technology while preserving local roots is crucial for maintaining customer trust and ensuring efficient service in an increasingly digitalized environment.
The Italian banking landscape is undergoing significant shifts, with strategic deals and political considerations playing an increasingly important role. As , GFMReview noted, Italy’s banking shake-up is about more than just balance sheets; it’s a reflection of a new era of strategic capitalism. The continued relevance of the BCCs demonstrates the enduring value of a banking model that prioritizes local engagement and community development.
