The Bank of Italy monitors liquidity risk in various ways; since September 2008 controls have been tightened and banks are now required to maintain a positive net liquidity position on maturities up to one month. When the strains were at their height, direct steps were taken in respect of foreign parent banks, with the help of the relevant supervisory authorities.
Specific measures of an extraordinary nature can be adopted for branches of foreign banks with a significant volume of deposits raised in Italy. The Bank of Italy’s supervision of branches includes important controls on the transparency of banking services offered to customers and against money-laundering, about which I will say more shortly.