The banks stand at a healthy Capital Adequacy Ratio (CAR) of over 14 percent and have shown a steady increase in capital even in absolute terms, and equity of the banks is now Rs722 billion (June 2011). While the picture appears quite stable, the key challenge comes from the word I used just now “economic slowdown”.
Between 1995 and 2001 labour productivity in Italy rose on average by 1 per cent a year; in manufacturing the average annual increase was 1.2 per cent. In Europe in the same period labour productivity rose by 1.4 per cent a year in the economy as a whole and 3.1 per cent in manufacturing.