"The stock of non-performing loans is declining with increasing intensity and new non-performing loans have returned to their pre-crisis level", also because the public guarantee system on securitizations "has favored the NPL market". This was stated by the Minister of Economy, Pier Carlo Padoan, speaking in Rome during the 2017 Italian Banking Conference organized by the Luiss University.
"The Italian financial system is at a turning point - he added - but we must continue on this path and the path remains long".
The minister recalled that, faced with the various Italian banking crises, the government "has dealt with the specific circumstances with specific solutions, and this has been one of the keys to the success of the interventions".
The European framework "has given margins of flexibility - continued Padoan - and in no case has the bail-in been used: savers and employment have been protected".
On the other hand, according to Padoan, this process has highlighted "the critical issues of the European construction to be resolved within the framework of the banking union process". In particular, "the most critical issues are attributable to the overlapping of the BRRD rules and those on state aid".
In general, the number one of the Treasury said again, "the completion of the banking union must make decisive progress in understanding the complex problems that its introduction can entail" and "it is important that this transition process is implemented in an orderly manner to avoid shocks in the Npl market”.
