“This government has never been kind to us, so much so that in every decree-law we have found measures against us which are certainly questionable and which have no correspondence in the European regulatory framework, most recently the abrupt centralization of school treasuries. Nonetheless, we renew our full and convinced support for the executive, emphasizing how the tasks that await it and that await the country are so demanding as to require everyone's loyal support". This was assured by Giuseppe Mussari, president of ABI, as he opened the fifty-second assembly of the Association this morning in Rome. Among others, Prime Minister Mario Monti and the governor of Bank of Italy, Ignazio Visco, were present.
ITALIAN BANKS PENALTY, TOO MANY RULES
"Banking companies - continued the number one of the ABI - are not asking for favorable rules, but for a level playing field, based on the right rules of stability, transparency and competition, without administrative constraints, obligations to provide free services for subsidize the inefficiencies of other sectors". According to Mussari, "if the European regulations penalize us, the national regulations have seriously affected the profitability of the banks. Too many rules prevent us from operating and, in some cases, affect the mechanisms of a market economy. Let me be clear: no one complains about the necessary transparency, which we are fully committed to, but transparency is one thing and the 500 measures of the last five years that have, for various reasons, affected banking companies, two measures a week" .
ENHANCE BANKITALIA QUOTAS TO STRENGTHEN CAPITAL
Furthermore, the ABI adheres to the proposal launched during the last Acri congress, the association of banking foundations, for "the enhancement of the capital shares" held by the Banks in the Bank of Italy (more than half held by Unicredit and Intesa Sanpaolo). Mussari believes that "the assets of the banks would benefit: it would increase our ability to disburse credit, it would put an end to assumptions as unfounded as they are specious". The Banks are also asking for the possibility of tax deductions on credit losses.
THE SPREAD IS THE FIRST PROBLEM
“The spread represents the first problem for Italy – continued Mussari -. Higher spreads mean less credit, more expensive credit and ultimately less growth. The spread is the result of past mistakes and speculation and is fought with rigour, growth and cooperation. Cooperating means making every effort to promote existing reforms, helping to improve the idea of Italy and its stability abroad. This obviously does not exclude critical observations, even the most profound ones. But those who decide to cooperate do so by helping to build, not just share, a common goal".
SPENDING REVIEW, WITH YOUR SAVINGS LOWER TAXES
The President of the Italian Banking Association considers the spending review decree “a moment of qualitative transformation of the battle to contain expenditure. We applaud the first measures launched with the decree of early July". But now it is necessary that "all the resources deriving from the spending review savings are destined to reduce the tax burden, which has reached unsustainable levels for businesses and households".
EUROPE: GOOD BANKING UNION, NOW MAKE IT HURRY
As for the European responses to the crisis, “we express a positive judgment on the conclusions of the European Council of 28 and 29 June – Mussari said again -, but it seems to us that the urgency dictated by the markets is not sufficiently reflected in the implementation of the measures. The crisis we are experiencing today is a crisis of confidence in Europe as a political and economic entity, it is not simply the sum of the difficulties of some of its member countries. For this reason the response must be political, European and unitary, in the sense of a single federal choice”. Italian banks therefore say yes to the banking union, which means "common rules applied and sanctioned in a coherent manner, common rules for the management of banking crises and a European deposit guarantee scheme".
