Paolo Baffi was an intellectual deeply absorbed by the problems of his time: the great depression, the war, reconstruction, monetary stability. He took care of these problems by acquiring both theoretical tools and a thorough knowledge of statistics.With a key role in the Bank of Italy’s...

The financial crisis and the proposed changes in bank regulation seem to have inverted the trend of declining capital ratios and lower quality capital base which emerged from 2005 to 2007, especially for large Italian listed banks, and have stopped the generous dividend payouts. The recent...

The definition of an internal process to prevent and manage reputational crises is a priority for banks.The Compliance Function can offer a tangible contribution to implement an effective crisis management process.The definition of a contingency plan, of a team of crisis management and of lines...

The debate on new rules currently focuses on two major questions. On the one hand the process of reform of the prudential regulation of banks (Basel 3), coming to an end after the Seoul G20 approval of Basel Committee proposals. On the other hand, particularly in Europe, the discussion on the...

Which are the functions of a compensation system? How it can be used by a company or a bank as an instrument of human resources management? Which are the relations between remuneration systems and bank performances? Only the answer to these questions can help to redefine and project the...

The recent case-law decision from the Supreme Court on overdrafts fees and the usury law will involve the amendment of the decree that establishes the limit beyond which the interests are considered usurious, and that excludes the overdraft fee from the calculation of this limit.

Analyzing corporate fundamentals in the internal rating process (both at industrial and competitive level), leveraging on public information, is an important issue. The aim is to facilitate the counterpart’s forwardlooking assessment, beyond a stringent cyclical point-in-time valuation, with a...

The recent international financial crisis has clearly outlined the need to integrate liquidity risk measurement with stress tests.The introduction of these practices is an important tool for liquidity risk management, for the correct determination of the liquidity buffer, for the development of...

The proper functioning of the board of directors plays a crucial role for the management of listed banks: a system of checks and balances can help to reduce the risk of uncontrolled growth. The board performance self-evaluation can improve corporate governance, as confirmed by the...

The introduction of Ias/Ifrs caused a deep innovation in banks’ data flow and is also inspiring the accounting standard setters in sketching new and more complex interpretation methods. The profitability analysis demands a more accurate and detailed approach necessary to manage complex and...