"Although the conditions of the sovereign markets show signs of progressive stabilization, the link between sovereign risk and banking risk continues to represent a criticality that only the completion of regulatory reforms and European supervisory structures will allow to overcome". This is what we read in the latest "Risk Outlook" published by Consob, which focuses on the missing links in the banking union process, including the banking crisis resolution mechanism and its financing.
The Commission also states that the capitalization levels of Italian banks are improving, but the solidity of our institutions continues to be weighed down by uncertainties related to the unfavorable economic situation, the repercussions of the sovereign debt crisis and the "uncertainties connected to regulatory innovations being defined" .
For these reasons “the profitability margins of the banks – continues the report – are compressed by the low interest rates that only the German, English and French institutes have managed to compensate with trading activities. In Italy and Spain, on the other hand, banks continue to report an increase in non-performing loans”.
