Italy, its Banks and the Banking System

The main features of a modern banking system in Italy were formed in 20-30 years. XIX centuries.

The crisis of the 30-ies. seriously affected the banking system, forcing the state to produce a considerable part of the nationalization of banks and create a credit system of the supreme bodies of two institutions - Inter-ministerial Committee on loans and savings, and the Central bank of issue - the Bank of Italy. The second level of the credit system is represented by commercial banks and specialized credit institutions.

Modern banking system in Italy has its own peculiarities.

First, a considerable proportion of public sector involvement (in such banks account for 35% deposit, 35% of loans and 40% of employees in the banking sector). The presence of the state of the banking sector is manifested in two forms: provision of credit, which was abolished in 1983, and a commitment to use a certain percentage of their assets in the form of land, agricultural and movable bonds. The latter is now only for agricultural land and bonds, their obligatory share fell to 4.5%. The presence of the state of the banking sector increased politicization, as the appointment to senior positions of banks going under rule the so-called political "collation." For example, the president of the "Banco Nazionale Ravoro Affairs" is a socialist, the president of "Banco di Sicilia" - a Republican and president of "Banco di Napoli" - a Social Democrat.

Second, banks and lending institutions are divided into the institutions of the short, medium and long-term lending. Short-term lending institutions include six main groups: government lending institutions, mainly commercial banks lending to large firms, banks of national interest, performing a wide range of banking, private commercial banks with a large number of offices and service of medium and small businesses and private clients, savings banks whose activities are related to private clients and is limited within a defined territory; handicraft and agricultural institutions, national or cooperative banks for financing small and medium-sized enterprises in industrial and agricultural production, specialized credit institutions, mainly providing investment loans to enterprises.

For institutions, medium-and long-term lending is characterized by specialization (industry, agriculture, mortgages, loans of medium and small businesses). The nature of specialization determines the term of the loan. Most of these institutions, public and parastatal. They form their capital by issuing loans and deposits. The most common short-term credit institutions, numbering more than 1,000 lending institutions.

The Italian banking system has always had great competition from savings banks, which, although not universal, are very strong competitors in their field, which is another feature of the system.

Since the late 70s. increased privatization of the banking system, although the state's share is still significant. For example, in 1988 it was privatized, "Mediobanca". As a result, 50% of its capital belongs to private individuals, 25% - the national interests of banks and 25% - to the state.

In recent years, the Bank of Italy began to pursue a policy of external development, especially in the direction of France and Germany, and the Italian market has become available for investment by foreign banks.

The official currency in January 1, 2002 Euro.
It is also very original Spanish banking system.  
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