Bank profitability is not easily observable and measurable, except in the long term and ex post. But bank management, especially after the crisis, must be monitored also in the short term, and therefore profitability requires indicators for a continuous and proactive measurement. Beyond the most...

The debate on new banking regulation after the crisis has focused on the need to improve the quality of capital and to harmonize its definition, reducing the national differences. In Italy, many problems may affect the scenario in the coming years, first of all the unfavourable treatment of...

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....

In the area of financial education it is important to link training content to its function and receivers, and to realize a coherent and useful format.The topics of financial education have to be related to specific areas and situations and to welldefined needs. The trainers need to understand...

In a global context in which many banking systems are wondering about their future and how to redefine a modus operandi that has been overwhelmed by an epochal crisis, it is a reason of strength for the Italian economy to count on a traditional banking system, based on credit to the firms and...

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.

To overcome the crisis in a «real» and virtuous way, the preference should be accorded to measures to revive demand, increase the supply of goods and services provided by public administrations and keep markets open and competitive. The financial way to overcome the crisis is usually...

The Basel Agreements, designed to pursue financial stability, have been instead a cause of instability, revealing fundamental analytical and operational weaknesses. The idea to define a constant capital ratio through complex statistical models implies serious dangers. A radical change is...