The problems still facing Italian banks Banks in Italy, like those in other countries, are faced today with profound changes in technology and market structure. The still weak economic situation and the uncertainty associated with regulatory changes are compounded in Italy by the large volume of nonperforming loans, which squeeze profitability, and inadequate governance arrangements.
Important measures have been taken of late on both fronts; banks need to act swiftly to seize all the opportunities these offer. Net of value adjustments that banks have already made, the stock of non-performing loans comes to just under € billion. More than half that amount refers to situations where the borrower’s difficulty is temporary.