Global Business & Economics Program Director at the Atlantic Council, Andrea Montanino, sits next to the Governor of the Central Bank of Italy, Iganzio Visco, as he answers questions at a private breakfast to discuss the structural changes occurring in the Italian banking sector.
On April 14, the Governor of the Bank of Italy, Ignazio Visco, joined the Atlantic Council for a private breakfast roundtable conversation. Governor Visco addressed the challenges facing the Italian banking system following the introduction of the Single Supervisory Mechanism and the new bail-in rules in the Eurozone, as well as the recovery of the Italian economy from the great recession. Mr. Visco also addressed plans by the Italian government and the private sector to create a fund to help ailing lenders struggling with non-performing loans.
Participants in the private discussion listen intently as Governor Visco delivers his keynote address to being the greater conversation.
- Italy’s Debt to GDP ratio has increased from approximately 100 percent before the Great Recession to approximately 125 percent today. At the same time, Italian banks have increased their capital reserves from approximately 8% to approximately 12.5%.
- Although Non-Performing Loans remain a problem, the Italian banking system has proved to be extremely resilient.
Participants asking Governor Visco about how the structural reforms by the Italian government will affect their respective concerns.
- Structural reforms remain a top priority. A judicial reform aimed at reducing bad loans recovery times will be approved shortly.