We are confident of the outcome of this exercise, aimed at eliminating doubts about banks’ solidity. In Italy analyses of this kind are routinely part of both on- and off-site supervision. The inspections carried out recently at twenty intermediaries made it possible to assess the adequacy of their loan loss provisions and to request corrective action where necessary.
The same action is now being taken at other intermediaries. The methods used provide an example of how such analyses can be conducted. Any capital shortfall that emerges for some European intermediaries will be met in the first place with private-sector resources.