But the international financial crisis of the Nineties had a devastating effect on the economy: foreign capital fled and a housing bubble burst, leaving many bankruptcies behind. Currency convertibility was soon suspended. Financial reconstruction had to start again, but this time under the guidance of a central bank: the Bank of Italy was founded in 1893.
While not yet formally monopolist of the currency, the newly created institution had the size and the capability to lead the reorganization, and to avoid major financial crises until the Great Depression.