The impact would mostly derive from the treatment of operational risk; the rule on the minimum requirement for banks that use internal models (known as the ‘output floor’) is expected to have a very limited impact in Italy.
This could be reduced further by the steps that the banks will certainly take to adapt to the new rules during the long transitional period prior to full implementation. Banks must make good use of the time available before the introduction of the new rules. Measures to strengthen their balance sheets and improve profitability are fundamental, continuing the action undertaken in recent years.