In analyzing the options available to strengthen capitalization of Italian banks during the crisis, it is useful to build an evaluating system for cost/yield in different scenarios.The results of a simulation of so-called Tremonti bonds show that these are useful tools even if economic...

Banks capitalization has assumed greater importance after the new minimum capital standards required by Basel 3 and 2011 Eba Recommendations.This question could overshadow other important issues, such as those referred to the strategic models banks should adopt towards firms and individuals

It is desirable to limit the negative effects of the originate to distribute model on the efficiency of risk management, considering also its positive aspects. The recent EU initiatives aim to refocus banking activities to practices more attentive to the needs of the production system and to the...

The last two years have stressed how special and important banks are. When the financial system fails, the whole economic system is affected. The financial sector has undergone an unprecedented wave of innovation, change, consolidation and now crisis. We now have a better understanding of the...

The ABI choices on Compliance Tests have led to the drafting of the White Paper on Compliance Function and to the need to explore some topic issues. After identifying the categories of checks carried out by the Compliance Function and the main stages of Compliance Risk Management, the analysis...

Many kinds of bad banks have already been launched in several countries following the financial crisis, producing successful results, reducing asymmetric information and market failures related to adverse selection and moral hazard. On the basis of the characteristics of these experiences, it is...

Basel 2 has dominant role in redefining financial markets regulation after the crisis, for which it provides relevant proposals: new rules for banks’ capital composition, measures to mitigate pro-cyclicality, the introduction of limits in the leverage ratio, measures to reduce systemic risk....

The crisis has shown the need to strengthen supervision on systemic risk and on large complex financial institutions. The de Larosière Report and Eu Commission indications allow to strengthen the architecture of financial regulation and to accelerate convergence. Some important aspects,...

The financial crisis has highlighted the issue of compensation of managing directors. In Italy, the Central Bank has taken action to avoid banks’ crises in deep contrast with the high level of managers’ compensations. With specific rules the Bank of Italy has granted to the shareholders’...

A correct response of banks adapting and reinforcing their internal controls systems is an absolute condition for the development of such systems and to ensure a real contribution to improve bank performance. Otherwise, the alternative is only the decline.