Developments in national banking systems have closely mirrored those in the respective economies. In the first phase the crisis hit the systems that were exposed to toxic assets: the United States, the United Kingdom, and a number of euro-area countries. The result was widespread bank failures, countered by large-scale state support.
Italy’s banking system, which was not exposed to toxic assets, emerged almost unscathed from the early stages of the crisis. It was, however, profoundly shaken by the deep and prolonged recession.