In March 2020, we agreed to introduce a new public and private sector asset purchase programme, the pandemic emergency purchase programme (PEPP), with an initial envelope of € billion, which was subsequently raised to € billion following the increases decided in June and December 2020. The Bank of Italy purchased € billon during the year.
On a better note, systemic vulnerabilities in the banking sector are assessed as moderate. Bank profitability has improved owing partly to higher longer-term interest rates. This should, however, not overshadow rising fragilities related to the worsening macroeconomic outlook.