The Bank of Italy urges banks to help recovery
Banks must do their bit to help Italy come out of the crisis, Fabio Panetta, deputy CEO at Bankitalia, said.
During a meeting of Italy’s cooperative credit banks (BCC), Panetta said that any long-lasting recovery cannot take place without adequate financial support to Italian firms.
According to Panetta, banks must help the country’s economic recovery by stopping their credit crunch policy towards Italian firms.
As Bankitalia’s deputy CEO also pointed out, it is in the banks’ interest to do so, as capital market growth is necessary for their survival too.
“Banks must do their bit. Each bank in Italy should bear in mind the negative effects that a prolonged and indiscriminate credit crunch can have on the country’s economic scenario,” Panetta said.
“By offering advisory services for direct funding activities, banks can strengthen rather than weaken their client relationships with Italian firms as well as their role within a more articulated financial system.”
Panetta has also reminded Italian bankers that the country’s high unemployment rate, especially among young people, is causing a fall in families’ purchasing power as well as a loss in the human capital the country needs to get back on its feet.