“The weakness of the Italian macroeconomic framework, the uncertainties surrounding the intensity and vigor of the economy, require Italian banks to continue along the path of monitoring liquidity and credit risks, strengthening their capital base and containing costs”. The intervention, during a closed-door meeting at the Rosselli Foundation, by the governor of the Bank of Italy, Ignazio Visco, was strong, inviting even the largest cooperative banks to transform themselves into limited companies, as there is an urgent need for "a clear change of pace”.
“There is no immediate, simple solution – explains Visco – to ensure that the banks once again fully play their role of supporting the economy. We need to continue the recovery of profitability and strengthen the assets".
The return of investor confidence, the balance of public accounts and the reforms will avoid "tensions on the government bond market", allowing for a reduction in the exposure of Italian banks in BTPs so as to increase support for households and businesses instead.
Visco also spoke of the future of Foundations, at a time when the Treasury is working on a law on the subject which should first of all abolish the control of a Foundation over the transferee bank, then provide for the effective diversification of the entities' assets (the Treasury thinks to a limit of 30% in the transferee which could be a problem for Compagnia Sanpaolo, Cariparo and again Mps), finally studying the ban on subscribing to debt capital increases and the ban on investing in derivatives and hedge funds.
