4  BIS Review 10/2005  Long-term trends in the Italian banking industry Demographics Banks existing at 31.12.1990  1,064  Banks existing at 30.06.2004  790  Banks, that went out of business between 1.1.1991 and 30.6.2004  812  Profitability and productivity 1980-1990  1991-2003  (averages of annual data; percentages) Return on equity  11.3  6.0  Operating profit/total assets  1.70  1.39  Rate of change in per capita staff costs at constant prices  0.8  0.1  Rate of change in assets per employee at constant prices  1.0  4.0  Rate of change in gross income per employee at constant prices  1.1  2.2  Listed banks 1981  1990  2004  Number  32  47  40  Market share (assets) (1)  23%  30%,  80%  Losses of banks that went out of business: 1990 - 2003 (2) Nominal losses (millions of euros)  12,998  Present value as of 2003 (millions of euros) (3)  17,465  Present value 2003 / GDP 2003 (3)  1.34  1) Directly and through unlisted subsidiaries.
So too is the breadth of price increases and the factors driving them. Based on the evidence we have, it is too early to conclude that inflation is sustainably in the target range. In terms of underlying inflation, we have just reached the midpoint of the target range for the first time in over seven years.