BIS Review 40/1998  ˝  -5-  4. Banks and other intermediaries: competition and integration The Italian financial system was historically bank-oriented rather than market-oriented. It did not offer valid opportunities for portfolio diversification: the scope for investment was restricted to one instrument - bank deposits - offering modest yields and a nominal value that was stable over time.
In the last fifteen years Italians’ high propensity to save, the increasing supply of government securities, the launch of investment funds and the liberalization of capital movements have enormously enlarged the role of the financial markets and the opportunities for diversification.