Banking Development and the Economic Impact of Natural Disasters

From Short to Long Term Effects

Bibliographic Data

ID21353014
AuthorsValentina Peruzzi (0000-0002-6846-0578, Department of Economics and Law Sapienza University of Rome Rome Italy), Pierluigi Murro (0000-0002-7743-5024, Department of Accounting and Corporate Finance LUISS Guido Carli, LUISS University Rome Italy), Matteo Alessi (Federcasse Rome Italy)
Year2026
Volume66
Issue3
Pages844-867
Publication date2026-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Regional Science (JOURNAL)
Journal identifiersISSN: 0022-4146 • E-ISSN: 1467-9787
PublisherWiley (PUBLISHER • GB)
DOI10.1111/jors.70048
LanguageEN
References cited43

This paper investigates how financial development and local banking structures shape the economic resilience of communities in the aftermath of natural disasters. Focusing on Italian municipalities hit by earthquakes between 2008 and 2022, we explore the role of banking presence, particularly cooperative banks, in supporting recovery. Using a staggered difference‐in‐differences approach, we find that while employment levels are largely unaffected in the short term, the number of enterprises initially declines but rebounds significantly over the long run. The presence of local banks, and especially cooperative banks, is associated with stronger recovery patterns, highlighting their importance in enhancing community resilience

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