Central bank independence needs to be more than just of the political variety though: it also means the central bank having a capability of resisting the short-termism of financial markets (and, for that matter, the occasional intellectual fad which emanates from academia).
A recent Bank of Italy analysis confirms that the effect of the pandemic on Italian banks’ credit risk exposure could be higher among less significant institutions than among significant ones, due to the different sectoral composition of the loan portfolios of the two groups. •  National insolvency procedures are very heterogeneous across EU member States.