He also had little sympathy for the many restrictions on banks’ activity (on area, sector, type of credit) which were not to disappear in Italy until the 1990s. On banking supervision he favoured a flexible approach and disliked rigid administrative rules: “If the regulation really regulates, it only prevents the good transactions and does not prohibit the bad”, he wrote.
The dual announcement of the SMCCF and PMCCF was well received by the market. Between March 23 and April 6, credit spreads for investment-grade bonds declined substantially. While the PMCCF has not purchased any bonds since it opened, it serves as a backstop should markets enter another period of stress.