However, if core Europe deleverages absolutely, then we might see a liquidity squeeze, not only in Asia but across the globe as well. Capital flows impact exchange rates, interest rates, trading volumes and future demands on currency withdrawals. These are not small concerns, as these can quickly become the stimuli for systemic risk. The BSP is thus always watchful.
At the end of last year, the number of residents per bank in Italy was about 100,000, much higher than the average of 67,000 in the euro area and 48,000 in Germany, even if the number of residents per bank branch was lower: about 2,000 compared with 2,300 in the euro area and 2,600 in Germany.