The Bank of Italy’s assessment of the current and prospective capital adequacy of MPS, in the opinion submitted under the law to the Ministry for the Economy and Finance, is positive. In the course of the last two decades the balance sheets of the major banks around the world have grown more complex.
Alongside the inherent difficulty of evaluating the quality of loans, there is the problem of fully understanding the effective role of the structured financial products that the banks hold for investment or hedging purposes. The importance of these products for Italian banks is limited, definitely less than for other important banking systems. Derivatives and structured finance products can facilitate risk management for well-informed operators.