Basel 3 poses serious risks for lending activity in Europe and in Italy. The long period of convergence, while necessary, could not be sufficient to allow banks to satisfy the growing needs of households and firms, even with a significant recovery of bank profitability.

Banks' activity is challenged by the macroeconomic, financial and regulatory environment emerging from the financial crisis. Slower economic growth, low interest rates, more stringent regulation on capital and liquidity, the need to decrease leverage for a number of banks, increased market...