2011年-FSB全球金融稳定委员会_Peer_Review_of_Italy_34页_360kb

Summary of the Peer Review of Italy

Core Content

The peer review of Italy, conducted under the FSB Framework for Strengthening Adherence to International Standards, evaluates the country's progress in implementing financial sector standards and policies, particularly in response to the 2005-06 FSAP recommendations. The review highlights both the strengths and areas for improvement in Italy's financial regulation and supervision, as well as its resilience to the global financial crisis.

Main Points

1. Financial System Structure

• Banking remains dominant, accounting for 82% of total system assets (243% of GDP).
• Insurance holds 12% of system assets (36% of GDP), with no significant growth since 2004.
• Pension funds and banking foundations have driven the expansion of the financial system by around 40% since 2004.
• Equity markets are relatively small, with Borsa Italiana Spa listing 291 firms by end-2009, an increase of only 22 since 2004.
• Stock market capitalization reached 29% of GDP in 2009, down 20 percentage points from 2005 due to falling stock prices.
• Banking sector concentration has increased, with the top two and five banking groups holding 34% and 53% of total assets respectively by end-2009.
• Internationalization of the banking sector has grown, with foreign lending representing 27% of total lending in 2009 (up from 8% in 2004).
• Foreign banks in Italy accounted for 18% of system assets in 2009 (up from 8% in 2004).

2. Regulatory Framework and Crisis Response

• Resilience during the crisis was attributed to the traditional, relationship-oriented banking model, stable retail funding, and prudent lending practices.
• Non-existent subprime mortgage market in Italy reduced exposure to toxic assets.
• Regulatory measures included:
  • Government guarantees and swaps to sustain liquidity (Decree-Law 157/2008, converted to Law 190/2008).
  • Capital injections for undercapitalized banks via MEF's subscription to capital increases (Decree-Law 155/2008).
  • Tremonti bonds issued by sound banks, eligible as Tier 1 capital, and subscribed by the MEF (Decree-Law 185/2008).
  • Deposit protection through a state guarantee until October 2011.
• Stress tests were conducted by the BI, following a top-down and bottom-up approach, and the results showed that the largest Italian banks remained above the Tier 1 capital adequacy ratio threshold of 6%.
• Key reforms include:
  • Strengthening legal protection for supervisors.
  • Implementing past due loan classification requirements.
  • Adopting comprehensive rules on connected lending.
  • Increasing supervisory resources for on-site inspections and examinations.
  • Introduction of a Collateralized Securities Loan facility and a collateralized interbank market (MIC).

3. Insurance Regulation and Supervision

• Significant progress has been made in strengthening insurance regulation, particularly in:
  • Inspection powers and risk-based supervision.
  • Fraud prevention.
  • Supervision of reinsurance and insurance intermediaries.
• ISVAP has applied to become an IAIS Multilateral MoU signatory, which is expected to enhance cross-border cooperation and information sharing.
• Solvency II will increase supervisory demands, requiring ISVAP to prioritize its activities and maintain a balance between regulatory compliance and ongoing prudential supervision.
• Fit-and-proper requirements for insurance companies are expected to be expanded, which would further improve market confidence.

4. Corporate Governance, Investor Protection, and Market Transparency

• Legal amendments have improved minority shareholder rights and independence requirements.
• Enhanced oversight and enforcement of corporate governance for insurers.
• Public disclosure requirements have been expanded for insurers and bank debt issuers.
• Strengthening investor protection includes monitoring the marketing of structured products.
• Legal protection for those responsible for reporting corporate governance deficiencies is recommended to encourage free communication with regulators.

Key Issues and Recommendations

• Loan classification should be standardized, with a 90-day past due requirement to align with international standards and avoid pro-cyclical effects.
• Legal empowerment of the BI to remove unfit directors and officers is needed to ensure sound bank management.
• Supervisory independence and resource allocation should be maintained, especially in the context of major regulatory reforms.
• Definition of sophisticated investors and suitability criteria for complex products remain challenging, requiring further international coordination.
• Derivatives risks to public entities (e.g., municipalities) need better oversight, particularly in the context of OTC product sales.
• Financial innovation should be balanced with systemic risk considerations, ensuring it supports economic growth without creating instability.

Conclusion

Italy's financial system demonstrated resilience during the global financial crisis, largely due to its traditional banking model, stable funding base, and prudent regulatory environment. However, the country still faces challenges in terms of capital adequacy, financial innovation, and supervisory effectiveness. The FSB encourages continued reforms and international cooperation to ensure long-term stability and alignment with global standards.