Italy: Financial Sector Assessment Program-Technical Note-Financial Safety Net and Crisis Management Arrangements
IMF Staff Country Reports, August 4, 2020
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- Italy: Financial Sector Assessment Program-Technical Note-Financial Safety Net and Crisis Management Arrangements
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Bibliographic details
- Published: August 4, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513552163.002
Executive summary and key findings
- The Italian financial safety net and crisis-management framework has been substantially strengthened since the 2013 FSAP.
- Authorities have:
- enhanced the early intervention framework;
- introduced a new resolution regime (including recovery and resolution planning requirements);
- introduced reforms of the two deposit guarantee schemes (DGS) that are active in Italy.
- Further enhancements at the Banking Union level would yield additional benefits for Italy, as outlined in the 2018 Financial System Stability Assessment for the euro area (IMF Country Report No. 18/226). These enhancements include:
- the introduction of an adequately funded common deposit guarantee scheme;
- a harmonized bank liquidation framework;
- a finetuning of state aid rules.
Policy implications and recommendations
- Continue implementation and enforcement of early intervention measures to improve crisis-prevention effectiveness.
- Strengthen resolution planning and recovery requirements for banks to enhance resolvability.
- Advance reforms of the two active DGS in Italy to increase depositor protection and system resilience.
- Advocate for Banking Union-level reforms (common DGS, harmonized liquidation, state aid rules) to complement national arrangements and reduce cross-border fragmentation.
Subject areas and keywords (as provided)
- Subject: Bank liquidation, Bank resolution, Bank resolution framework, Banking, Crisis management, Deposit insurance, Financial crises, Lender of last resort
- Keywords: Bank liquidation, Bank resolution, Bank resolution framework, banking group, banking industry, BNP Paribas, CR, Crisis management, depositor preference regime, financial market, financial support, ISCR, Lender of last resort, member bank, private sector, public funds, resolution authorities, resolution regime post BRRD transposition
Content in this bundle
- Executive Summary