In the first half of the year, losses on loans absorbed three quarters of operating income. The banking system’s difficulties are unlikely to be overcome soon. There is still pressure to reduce the size of banks’ balance sheets. However, these developments may provide the right incentives to Italian firms to overcome their heavy reliance on bank credit.
I would expect that discussion to continue after the release of the Code in May and that the Code might evolve as a function of that discussion. I would like to make the point that if market participants think it would be preferable for the Code to have gone further, they are welcome to go down that path in their operations.