Along with the nature of the regulatory regime that will be effective, the key aim of prudential regulation remains what it has always been – to encourage the efficient allocation of capital to productive uses while protecting the system from the defects and excesses that are inherent in financial markets.
The risks, especially those connected with the performance of world trade and the conditions on Italy’s financial markets, have intensified. The accentuation of the protectionist stances of trade policies, enduring tensions in various parts of the world, and the knock-on effects on business confidence, could dampen world economic activity next year, slowing the impetus provided so far to our economy by the international context.