The checks on credit risk, which centre on loan classification and the adequacy of the banks’ write-downs, are very thorough; a selection of individual loans are screened and a very large proportion of the entire portfolio is checked.
BANCA D’ITALIA  The Governor’s Concluding Remarks Annual Report 2016  19  For the 101 banks (not counting mutual banks) under our direct supervision, last year the prudential review process produced positive assessments in 60 per cent of the cases. The 35 per cent that were put on a ‘watch list’ will be subject to more intensive and stringent controls and interventions.