Italian mutual banks and the challenge of Basel III

Francesco Cannata (), Giorgio D�Acunto (), Alessandro Allegri (), Marco Bevilacqua (), Gateano Chionsini (), Tiziana Lentini (), Francesco Marino () and Gianluca Trevisan ()
Additional contact information
Francesco Cannata: Bank of Italy
Giorgio D�Acunto: Bank of Italy
Alessandro Allegri: Bank of Italy
Marco Bevilacqua: Bank of Italy
Gateano Chionsini: European Banking Authority
Tiziana Lentini: Bank of Italy
Francesco Marino: Bank of Italy
Gianluca Trevisan: Bank of Italy

No 158, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: After a decade of deep transformation, which influenced both lending policies and risk management, Italy�s mutual banks are faced with the upcoming Basel III reform. Economic trends continue to exert pressure on the traditional bank business model. The entry into force of Basel III provides an opportunity to assess the changes under way, and identify potential problems. A simulation exercise conducted on June 2012 data evaluates the position of both mutual banks and central institutions relative to the new rules on capital and liquidity. The exercise paints a picture of broad compliance with the prudential targets, although some elements warrant greater attention. On the one hand, although the banks� capital endowment is of better quality and higher than the future minimum regulatory requirements, persistent low profitability and the increasing credit risk in the balance sheets might pose a problem in the future; on the other hand, a more efficient allocation of liquidity present in the system seems necessary, including via the introduction of new coordination measures.

Keywords: Basel 3; QIS; impact assessment; bank; capital; liquidity (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2013-04
New Economics Papers: this item is included in nep-ban and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bancaditalia.it/pubblicazioni/qef/2013-0158/QEF_158.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_158_13

Access Statistics for this paper

More papers in Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().