«We need to continue with determination in the immunization programs and extend them to the areas that have benefited less. There are two issues: we must hurry and we must do it on a global level, because the definitive overcoming of the pandemic can only take place on a global level “. This was stated by the governor of the Bank of Italy Ignazio Visco at the conference “The European financial system in the post-Covid perspective”.
GDP growth in 2021 will exceed 6%
“The recovery of economic activity is proceeding at a better pace than expected only a few months ago: output growth will exceed 6% this year, recovering more than two-thirds of what was lost in 2020. However, uncertainty remains high, above all a reflection of a health situation in Europe which has once again become an important source of concern, with consequences that are difficult to anticipate today, even if the short-term indicators continue to be generally favorable », Visco said.
The financial system has withstood the pandemic crisis well
«The Italian and European financial systems have faced the pandemic crisis without suffering significant repercussions. The interventions of the fiscal and monetary authorities have made a decisive contribution to maintaining relaxed financial conditions; the exit phase must therefore be managed with the necessary gradualness “, Visco added, explaining that, unlike previous episodes of crisis,” a recessionary spiral has not been triggered between the weakening of the balance sheets of companies, the markets and the conditions of the banks , favored by the liquidity provided by the Eurosystem ».
Increased levels of capitalization of banks
The financial sector was thus able to play “an important role in supporting the real economy in transmitting the measures launched by governments: between the end of February 2020, at the time of the outbreak of the pandemic, and last September, loans to households grew 6.2 per cent in the euro area and 5.2 per cent in Italy; those to businesses of 8.1 and 9.2 per cent respectively “. The levels of capitalization of the banks – he underlined – have further increased, thanks to the contribution of the limits on the distribution of dividends recommended by the supervisory authorities. And “profitability has started to increase again”.
Risks from the growth of crypto-currencies are increasing
«Globally, the risks to financial stability stemming from the development of the crypto-assets market are increasing. Although the latter represent a small share of the total value of financial assets, their capitalization increased 3.5 times in 2021, reaching 2,800 billion dollars ”. Visco explained that “the use of digital technologies in the offer of financial products and services must take place in conditions of safety for investors, issuers and the economy in general”.