The capital resources raised, in excess of € billion from 2008 onwards, allowed banks to comply with increasingly strict rules even in adverse economic conditions. Calls for capital strengthening were flanked by robust corrective action on corporate governance, risk measurement and control methodologies, and internal controls.
Taken together, these measures enabled Italy’s banking system – with just a few exceptions – to pass the European-wide comprehensive assessment. But even constant, incisive supervision cannot prevent the outbreak of financial ills, especially in a fragile economic environment. Italian and European law and the prudential supervisory model successfully ushered in by the Basel Committee promote the business independence of banks.