Bank of Italy, Visco: review the bail in. Italy pays for the mistakes of others – The Messenger

Italy should ask for the “revision, to be launched before June 2018,” the EU directive provides that the Bail in, or losses borne by investors in case of banking crisis. He asks the governor of the Bank of Italy, Ignazio Visco, that the same rule “contains a clause that provides for the revision,” “opportunity that should be exploited, building on experience.” Via Nazionale and the Treasury, reminds Visco, had asked in vain when defining the standard and does not retroactively apply a “smooth transition and less traumatic.”

The governor explains that to determine this change

“ traumatic ” have “definitely contest the public sector intervention to bank bailouts in various countries weighed on the finances of the state, in some cases threatening its equilibrium.” Clear allusion to what happened in Germany, Britain and France, where the bailouts of state (only Berlin has paid 250 billion) took place between 2011 and 2013 were ridden by speculation bolder increasing the cost of operations . In other words Italy today paying a high price because of the mistakes made by others.
The Bank of Italy asked the Italian banks to create, according to the possibilities offered by European standards a voluntary fund for crisis management “than the systems required additional deposit insurance.” Visco asks a voluntary fund as an alternative to the resolution fund and to avoid the stop of the EU Commission. According to the governor, “the cost” on banks “would be offset by the benefits which would derive all institutions and through strengthened customer confidence.”

The substantial cut in the value of pain (17%) of 4 banks sent in resolution was determined “not in a discretionary manner but according to specific European standards,” said the then governor of the Bank of Italy regarding the crash of Cariferrara, Carichieti, Banca Marche and Banca Etruria. According Visco “there were no practical alternatives” to the resolution except that “far more traumatic the liquidation.” The governor then states that the opposition of the EU Commission to the intervention fund Interbank deposits “in contrast to what happened in the past” because assimilated to state aid, could not have been brought before the Court of Justice as required by some EU .

There would be “even more serious consequences for banks and depositors,” requiring “a provision of the disbursement future” if they lose the Court. The ECB also had to authorize the intervention of the Fund, reminds Visco, and Frankfurt ‘would in turn could regardless of the opinion of the EU Commission. ” The supervision of the Bank of Italy has faced over the last 15 years about 100 banking crises and the “sequence of measures” taken against the 4 resolution was put in place, “as in all other cases,” he adds.

“Italian banks are well capitalized, also thanks to prudent and urgent watch,” Visco continues to Forex that “impaired loans are widely covered by write-downs and guarantees. ” Visco recalls well the words of ECB President Draghi that “there will be no new demands for higher provisions and capital strengthening.”

The Italian GDP “could grow around 1.5% in 2016 is that in 2017,” also stressed the governor of the Bank of Italy reiterated that estimated by the Institute in economic bulletin. Visco for the scenario “assumes that it further strengthening of domestic demand, especially investment.” “The uncertainty in the international environment and its repercussions are evident sometimes messy and violent elements of risk.”
 

 01/30/2016 12:27:37

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