Although the likelihood of a sharp fall in prices in this market segment is much lower in Italy than in other European countries, a further decline in the value of commercial real estate would reduce the quality of bank lending to these intermediaries.
Supervisory issues In recent years, once the most critical phase of the COVID-19 pandemic was over, new risk factors have emerged in connection with the escalating geopolitical tensions, the consequences of the energy crisis and the negative effects of climate change.