The markets’ attention is now focused on Italy’s ability to make further determined progress in the restoration of its public finances and simultaneously stimulate its economic growth potential through structural reforms. The path has been set with clarity of purpose; international public opinion acknowledges as much; it must now be followed with perseverance and resolution. But no-one can succeed on their own.
Because so many smaller community banks maintain capital levels well above minimum regulatory levels anyway, the tradeoff of higher requirements for a simpler approach may be promising This is only one idea, and there may be other approaches that could simplify smaller community bank capital requirements in a manner consistent with the Collins Amendment.