Some might even characterize the First and Second Banks of the United States as early efforts at law and macroeconomics. -4Building upon that strong tradition, I would like to focus this morning’s remarks on the role that law and macroeconomics has played since the financial crisis in promoting a more stable economy. I am, of course, referring to macroprudential financial regulation.
Ensuring the soundness of banks necessitates that national supervisory authorities apply rigorous criteria in assessing risk-weighted assets (the denominator of capital ratios). Italian banks’ ratio of risk-weighted assets to total exposures is high by international standards.