These weaknesses fed on each other and were decried at conferences and publicly condemned. Given that they were also deeply rooted in the country and its history, at least its recent history, a solution appeared remote. If you get a raging temperature when already under the weather, you run a serious risk, as Italy did in these years.
The ability of banks with significant concentrations to weather difficult market conditions will depend heavily on their risk management processes and the level of capitalization. From a risk-management and capital perspective, institutions generally should focus on the emerging conditions in their real estate markets, the potential cumulative impact on their portfolios if conditions deteriorate, and significantly employ other exercises to help identify CRE vulnerabilities.