Risk management is a process that needs to be strengthened, since it is aimed to reinforce banks’ stability and to prevent financial crises. For this reason, it should be embedded in business strategies and based on more severe evaluation techniques and stringent internal control systems

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...

After Basel 3 banks will need more capital and lower leverage, while earning lower profits. The new framework will require new capital management practices: the introduction of a risk-adjusted pricing, new forms of capital allocation, optimization of Rwa, a more efficient balance between the...

The new Basel 3 regulation will radically modify the functioning of banks, their relationship with the market and their profitability. The banks’ response to new and more stringent criteria must go through a redefinition of activities, a pricing review and a revision of operational processes...

Italian banks basically share Basel 3 principles, but they believe that the decisions taken, based on the method of «one size fits all», penalize banks that are characterized by a traditional business model and play a fundamental role in supporting economy. Eba exercise, in the view of Italian...

The current financial crisis was not something unexpected, a «black swan», but rather an event caused by human action and inaction, and therefore predictable and avoidable. The analysis of the role of the financial system, regulation, business models and management systems leads to point out...

The Italian banking system has successfully faced the impact of financial crisis but will suffer the effects of the «real» crisis on firms’ solvency and, consequently, has to raise additional cash funds.The use of securitization is an effective alternative to facilitate the flow of funds to...

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...

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....