Italy: Detailed Assessment of Compliance with the Basel Core Principles for Effective Banking Supervision
IMF Staff Country Reports, May 14, 2004
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- Italy: Detailed Assessment of Compliance with the Basel Core Principles for Effective Banking Supervision
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Bibliographic details
- Published: May 14, 2004
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451819823.002
Executive summary and main findings
- Reviews findings of the Detailed Assessment of Italy’s Compliance with the Basel Core Principles for Effective Banking Supervision.
- The Italian banking system seems to exhibit a high degree of resilience to possible macroeconomic shocks, as supported by:
- the evolution of some financial soundness indicators, and
- the results of various model simulations.
- Despite significant improvements over the last few years, the quality of banks’ loan portfolios remains moderate.
- Cost-cutting and restructuring remain key challenges for Italian banks, with several conjunctural factors putting pressures on costs and income.
Subjects and keywords (as listed)
- Subject: Banking, Basel Core Principles, Capital adequacy requirements, External audit, Financial institutions, Financial regulation and supervision, Internal controls, Loans, Operational risk, Public financial management (PFM), Revenue administration
- Keywords: banking system, Basel Core Principles, BI branch, BI regulation, board of directors, business plan, capital base, country risk, CR, External audit, financial condition, Global, holding company, interest rate, Internal controls, ISCR, Loans, Operational risk, senior management, supervisory instruction
Observations relevant for supervisors and policymakers
- Resilience indicators and model simulation results suggest the system can withstand macroeconomic shocks.
- Continued attention required on asset quality given the assessment that loan portfolio quality remains moderate despite improvements.
- Structural measures to address costs and income pressures are important because:
- cost-cutting and restructuring are explicitly identified as key challenges, and
- several conjunctural factors are putting pressures on costs and income.
International Monetary Fund. "Italy: Detailed Assessment of Compliance with the Basel Core Principles for Effective Banking Supervision", IMF Staff Country Reports 2004, 133 (2004).
Content in this bundle
- 1. Financial Sector Structure, 1992–2002