The deputy chief of the Bank of
Italy told the Senate Thursday the Italian banking system has
weathered a rough patch without a public bailout.
Italian banks have been weakened by the financial and
sovereign debt crises, a long recession, and market tensions,
Fabio Panetta said.
However, they have "autonomously weathered this impressive
succession of negative shocks, under the guidance of the Bank of
Italy," Panetta said.
They "did not rely on significant public intervention"
thanks to an exceptional rise in loan-loss provisions - equal to
53 billion euros in 2012-2013 and 26 billion euros in 2014.
EU banking union will become fully operational in 2016, and
its most innovative measure will be the so-called bail-in,
meaning that losses will be borne by shareholders and creditors.
"The possibility that small savings accounts will suffer is
very remote," Panetta said.
Accounts under 100,000 euros will be protected by the
Interbank Deposit Protection fund, he said.
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