The Italian banking system is at a
turning point that will see it put its recent troubles behind
it, the economy and finance ministry (MEF) has said.
In an article in an English-language newsletter, The Narrow
Path, the ministry referred to government reforms and a series
of interventions for lenders in trouble, including Monte dei
Paschi di Siena.
"The Italian banking system has long since been waiting for a
comprehensive reform addressing structural inefficiencies and
structural rigidities," it said.
"As of 2014, the Government has defined a comprehensive
reform plan while also tackling the crisis affecting several
banks...
"Even after facing a long recession, the Italian banking
sector has proven to be sound and resilient.
"The stock of NPLs (non-performing loans) is shrinking at an
increasing pace, while the origination rate of new exposure is
approaching pre-crisis level.
"Those comprehensive interventions on specific banks and on
the industry as a whole reduced and in some cases excluded major
sources of risk.
"Overall, after years of adjustments, the Italian banking
industry is returning to positive, effective and promising
levels of performance".
The newsletter also cited recent industrial production data
confirming that the recovery is taking hold and featured a focus
on the government's spending review.
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