The Limited Times

Now you can see non-English news...

Visco, 'bank crisis is an alarm bell' 


the governor of the Bank of Italy in a hearing in the finance commission of the Chamber: 'quick decisions in the USA, difficult in Europe', 'avoiding the race between prices and wages', 'fractional capital of Bank of Italy ensures independence' (ANSA)

The Credit Suisse and Svb crisis of these days represents "an alarm bell" for the European supervisory authorities and their crisis management.

This was stated by the governor of the Bank of Italy Ignazio Visco in a hearing to the finance commission of the Chamber, once again asking for a tool in Europe for the rapid management of crises in medium and small institutions, and thus avoiding "problems that accumulate over time".

Visco underlined how in the actions of the US and Swiss authorities the "fundamental point was to avoid a disorderly exit from the market and a disruption which, in chains, could compromise the entire system".

"Supervision has had flaws but rapid decisions have been made, especially in the USA" and "I believe that if we in Europe had a crisis" for "small and medium-sized banks we would not have an immediate intervention tool" as "I have been saying for years" .

So Visco according to which the Credit Suisse cases "are an important lesson".

"The increase in the cost of energy has been a tax and we cannot send this tax back to where it came from, we can accommodate it very quickly on a regional level, in some cases it is more difficult in others it is more expensive so there may be distributions of income and public finance interventions in favor of those who are most affected, but it is necessary to avoid a race between prices and prices and prices and wages and inflation expectations deviate from 2% in the medium term, because if they deviate towards the high that is the reference point to which all prices and wages will tend to adjust".

Visco specifies that "this is why we raised interest rates".

The capital of the Bank of Italy (equal to 7.5 billion) "is now held by 173 participants including banks, insurance companies, social security institutions and institutions, banking foundations and pension funds" with "a limit on the individual ownership of the shares (increased to 5% of the capital), beyond which the right to the dividend and the right to vote are excluded".

According to Visco, "the structure allows the bank to exercise its functions in full compliance with the principles of institutional, functional and personal independence".

Source: ansa

All life articles on 2023-03-22

You may like

News/Politics 2023-09-06T16:41:50.014Z
Life/Entertain 2023-05-13T05:27:17.714Z
Life/Entertain 2023-05-30T19:32:02.398Z
Life/Entertain 2023-05-05T14:04:20.063Z
Life/Entertain 2023-07-05T09:51:54.081Z

Trends 24h

Life/Entertain 2023-09-27T15:02:03.853Z


© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.