This paper employs quantitative and qualitative methods to examine the link between banking competition, branching and financial distress during the interwar period in Europe, focusing on Italy as a case study. Regression analysis and a systematic review of printed sources show that banks experiencing distress had opened scores of branches and operated in areas with harsher competition. Poor managerial choices led banks to have higher operational costs, pushing them to more remunerative but riskier activities. The 1920s saw a profound transformation of the Italian banking system, with extensive branch expansion and cut‐throat competition for deposits. This paper argues that these changes in the structure of the banking system rendered it more fragile when the international crisis hit. Available evidence on other European countries suggests that Italy was not an isolated case. The study contributes to the literature on banking crises during the Great Depression and the effects of banking competition on financial stability.

中文翻译：

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大萧条期间的竞争、过度分行和银行倒闭：来自意大利的新证据

本文采用定量和定性方法来研究两次世界大战期间欧洲银行业竞争、分支机构和金融困境之间的联系，并重点以意大利为案例研究。回归分析和对印刷资料的系统审查表明，陷入困境的银行开设了数十家分行，并在竞争更加激烈的地区开展业务。糟糕的管理选择导致银行运营成本更高，迫使它们从事报酬更高但风险更高的活动。20 年代，意大利银行体系发生了深刻变革，分支机构广泛扩张，存款竞争激烈。本文认为，当国际危机袭来时，银行体系结构的这些变化使其变得更加脆弱。其他欧洲国家的现有证据表明，意大利并不是一个孤立的案例。该研究为有关大萧条期间银行业危机以及银行业竞争对金融稳定影响的文献做出了贡献。