Journal of
Italian
Banking
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Archive » July / August 2024 » Banks and the economy: credit, regulation and growth

Banks and the economy: credit, regulation and growth

Fabio Panetta
July / August 2024 - n. 7-8
Keywords: Banche, credito, regolamentazione, crescita
Jel codes: G21, G28

The euro-area and Italian economies have recorded moderate growth, but the future remains uncertain. The still tight monetary conditions and geopolitical tensions exert a dampening effect. Inflation continues to fall. The reduction in the key interest rates will continue at a gradual pace. Past rate hikes are still squeezing demand and inflation, and the contraction of the Eurosystem's balance sheet is reflected in funding costs, liquidity and credit supply. The soundness of Italian banks is a strength; when providing credit, they will have to contain risks while supporting the real economy. The risks include those stemming from crypto-assets. MiCar is helping to bring order, but the complexity and everchanging nature of the issues require the attention of financial intermediaries, especially in protecting the most vulnerable customers.

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