There are still important differences, such as those in the treatment of hybrid instruments in computing regulatory capital, that must be analyzed and removed. The Bank of Italy will liberalize and simplify the procedures for opening new branches, thereby increasing banks’ independence in shaping their distribution strategies.
In particular, concerns about growth prospects in emerging markets and unfavourable developments in financial and commodity markets have signalled downside risks to the outlook for growth and inflation, relative to the latest ECB staff projection from September.