A drop in confidence in Government signatures due to forecasts of an  BIS Review 41/2005  3  increased risk of default on the public debt could multiply “risk premia” and foster a financial environment less conducive to investment and growth.
The main Italian banks have made progress since March 2008, when the Bank of Italy issued its first supervisory instructions on compensation: the total pay of top management has declined in the last two years; bonuses have diminished. Cost containment is still not widespread enough among medium-sized listed banking groups, nor has it involved all the top positions.