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Archive » October 2020 » The Italian Economy and Banks: implications of the pandemic and prospects

The Italian Economy and Banks: implications of the pandemic and prospects

Ignazio Visco
October 2020 - n. 10
Keywords: Banche, economia, pandemia
Jel codes: G21, G28, I10

European and national measures and bank actions have helped to reduce the impacts of the unprecedented crisis caused by the pandemic, but important risks for growth remain, requiring structural intervention. Falling demand and high precautionary savings can take root in the behaviour of households and businesses. For Italian banks, it is essential to continue to manage non-performing loans effectively, taking advantage of the progress made in recent years, without postponing the emersion of highly likely losses. The pandemic reinforces the challenge of bank profitability, tested by low interest rates, distribution costs, new competitors. Banks need improved skills, investments, good corporate governance.

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