The response of large banks to local needs, consistent with sound and prudent management, must be compatible with global strategies and vision. Thorough supervisory screening of the requirements of officers of banks and other intermediaries is a fundamental instrument of control, a guarantee of stability.
So is the possibility of removing those responsible for mismanagement or highly risky conduct before the situation precipitates, necessitating crisis measures against the bank as such. An extension of the Bank of Italy’s supervisory powers in this direction would be welcome; supervisory authorities in major economies already have such powers.