In the coming 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 return to growth" after the two-year period 2023-2024.
This was stated by the governor of the Bank of Italy
An effect, he underlines, "of the
rise in ECB interest rates
which led to an immediate increase in the cost of budget liabilities".
To deal with this situation, the "provision for general risks, fed this year with a provision of 2.5 billion, reaching 35.2 billion is envisaged".
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.
This is what the governor Ignazio Visco affirms during the assembly of the participants in the capital of the central institute.
"The current dividend distribution policy establishes that the sums allocated to the participants are included in the range of 340-380 million, subject to the capacity of the net profit and the capitalization needs of the Bank", therefore, "from the profit net of 2,056 million, it is proposed to attribute to the participants a dividend of an amount equal to that paid in recent years, equal to 340 million, corresponding to 4.5% of the share capital".
This was stated by the governor of the Bank of Italy Ignazio Visco, at the meeting of the participants in the capital of the Institute, specifying that "the special post would be fed for 40 million, thus settling at 280 million".
The 'normalisation' of the ECB monetary policy with the rise in interest rates, the gradual reduction of the purchases of securities and the end of bank refinancing at favorable conditions, determines the reduction of the Bank of Italy's balance sheet for 2022 which will be even more accelerated in 2023. As Governor Ignazio Visco explains to the assembly of participants, "at the end of 2022 the balance sheet assets of the Bank of Italy amounted to 1,477 billion, a decrease of 4 percent compared to 2021. Ten years ago, before purchase programs for the App and the Pepp, the balance sheet total amounted to around 600 billion. "The size therefore remains at very high levels compared to the past;
however, due to the normalization process undertaken, it is destined to decrease,