Banking Diversity, Financial Complexity and Resilience to Financial Shocks: Evidence from Italian Provinces

In this paper we investigate the influence of banking and financial diversity on stability. We compute an index for Italian provinces and, drawing from network theory, propose a measure development overall provincial sector. Our results show that in markets promotes greater Such beneficial effects are particularly evident during periods distress. ascribe our findings to better diversification achieved by more diverse systems, as documented lower loans concentration higher terms economic destination borrower category.