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Bank of Italy, profit drops after ECB policy change

2023-03-31T08:38:13.221Z


The change in monetary policy initiated by the ECB with the tightening of refinancing operations and the "greater devaluations on securities valued on the market", weighs on the 2022 gross profit of the Bank of Italy which drops from 9.2 to 5.9 billion EUR. (HANDLE)


(ANSA) - ROME, MARCH 31 - The change in monetary policy initiated by the ECB with the tightening on refinancing operations and the "greater devaluations on securities valued on the market", weighs on the Bank of Italy's 2022 gross profit which drops from 9.2 to 5.9 billion euros.

This is what the governor Ignazio Visco affirms during the assembly of the participants in the capital of the central institution.


    And in the next few years, the Bank of Italy, like the ECB and the other banks of the Eurosystem, "will find itself facing negative gross results, before profits gradually start to grow again" after the two-year period 2023-2024, affirms the governor of the Bank of Italy Ignazio Visco.

An effect, he underlines, "of the ECB rate hike which led to an immediate increase in the cost of budget liabilities".

The "provision for general risks, fed this year with a provision of 2.5 billion, reaching 35.2 billion" is envisaged to deal with this situation.


    The 'normalisation' of the ECB monetary policy with the increase in interest rates, the gradual reduction of the purchases of securities and the end of the refinancing of banks on favorable terms, determines the reduction of the Bank of Italy's balance sheet for 2022 which will be even more accelerated in 2023. (


   ANSA ).


Source: ansa

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