We deliberately maintained this policy, even when the market seemed to tolerate particularly high levels of risk. These practices, these evaluation criteria, which have been put to the test in the last two years, have so far brought benefits to banks, the economy, and the public finances. Liquidity The system’s liquidity is still guaranteed by the massive injections of funds from the central banks.
The oversight policy we introduced in 2007 has helped Italy’s banking system to weather the severe strains of the last part of 2008 without major shocks. We continue to ask the banks to ensure that foreseeable outflows are covered over a broad range of maturities. The tools of analysis and intervention are being continually improved.