The Bank of Italy, like other
eurozone central banks, is set to go into the red in the coming
years as a result of the European Central Bank's interest rate
hikes, Governor Ignazio Visco said on Friday.
He said the Bank of Italy would "will face negative gross
results, before profits gradually return to growth" after the
2023-2024 period.
He said the ECB rate hikes had "led to an immediate increase in
the cost of balance-sheet liabilities'.
Given this situation, the central bank plans to set up a
"general risk fund, fed this year with a provisional allocation
of 2.5 billion euros, which is set to go up to 35.2 billion".
He said the Bank of Italy's 2022 gross profit was 5.9 billion
euros, down from was 9.2 billion the previous year, following
the ECB's tightening of refinancing operations and "higher
write-downs on market-valued securities".
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