54° European Congress of the Regional Science Association International August 2014 – San Pietroburgo SUBSIDIARITY INTEGRATED BCC-CR: A MODEL OF SUSTAINABLE LOCAL FINANCE Giuseppe CONFESSORE 1, 2 , Maurizio TURINA 1,3 , Sandro TURINA 1, 2 , Ilaria BARBANTE 3 1. National Research Council – Area RM1, 00016 Montelibretti (Roma), Italy 2. Department of Engineering - University of Rome Tor Vergata, Via del Politecnico 1, 00133 Roma, Italy 3. Transfer Technology Office, Omicron.Tau srl / CNR prog. Riditt Genesi – Via dell'elettronica snc 02100 Rieti, Italy (giuseppe,confessore@cnr.it), (ilaria.barbante@omicrontau.it), (maurizio.turina@istruzione.it) (Sandro.Turina@uniroma2.it) ABSTRACT In more than 130 years, the cooperative banks and rural banks, have become a best practice, widespread in all the Italian regions so as to become, through ICCREA-Holding and Federcasse, a federal system included among the 130 European banks, referents ECB. A model that today has about 400 local banks and that, discounting the guiding principles, interprets the function as a development bank for the area, responding to the economic and social needs of individual communities. Objective of a BCC-CR is, in fact, promote development from the bottom, making the protagonists subjects of the local economy through a process that is defined of circular subsidiarity because element of synthesis between the vertical subsidiarity (integration of the different levels expressed by territory) and horizontal subsidiarity (integration of factors of the local development). In order to analyze and deepen the best practice of the BCC -CR model is, therefore, interesting assess the sustainability of local finance through a relation of functionality that interconnects the level of performance expressed by some important national areas with the intensity of mission of the financial model. The research team has already developed a unique indicator of territorial performance, presented in the session ERSA, 2011 (Spain) and an indicator of intensity of the mission of the BCC -CR model presented in the Workshop RSAI 2012 (China) and in the annual conference PRSCO 2013 (Indonesia). This dimension of the subsidiarity has allowed the research team of assess the relative effectiveness of the model through the measurement of the level of integration between the horizontal subsidiarity and the vertical one by means the structuring of a function of two variables, that, represented by a spherical model in three-dimensional environment (the circular subsidiarity is expressed by level lines to shape of circumferences in two-dimensional level), expresses the intensity of the integration as a factor in the sustainability of local finance.