Italy assesses the impact of Credit Suisse, SVB on the banking system

(Source: AP)

Italian Economy Minister Giancarlo Giorgetti said on March 20 that the impact of the crisis at Swiss bank Credit Suisse on the Italian banking system would be “negligible.”

Speaking on the sidelines of an event of Intesa Sanpaolo, Italy’s largest bank, in Milan, referring to the market turmoil associated with Credit Suisse and preceded by the collapse of Silicon Valley Bank (SVB) in the US, Minister Giorgetti said: “It looks like the market has calmed down a bit. I think the situation in Europe is under control. We are in regular contact with the regulatory authorities and we have peace of mind about the Italian banking system.”

On the same day, Governor Bank Italy’s Central Committee, Mr. Ignazio Visco commented that the country may face possible impacts from financial developments outside the European Union (EU) such as the collapse of SVB in the US and the Swiss bank Credit Suisse bailout.

“Financial developments occurring outside the eurozone can have an impact and represent another element of uncertainty,” Mr. although the Italian economy has shown resilience beyond expectations.”

[ECB khẳng định hệ thống ngân hàng châu Âu vẫn ổn định]

However, he also agreed with Minister Giorgetti that Italian banks will feel less affected by the Credit Suisse bailout. He said: “The problems of Swiss credit always in sight. In Europe, we have all the tools to deal with a liquidity crunch and we don’t see capitalization and liquidity problems in our banks.”

Mr. Giorgetti and Visco also shared the same opinion on the policy of raising interest rates by the European Central Bank (ECB) to combat high inflation.

“(Policy) should be calibrated with great care because raising interest rates can be helpful to control inflation, but it can also pose problems for financial stability,” said Minister Giorgetti.

And Mr. Visco said: “Give inflationary back to 2% should be our guide. The direction of the exchange rate is clear and certain even if it is necessary to act with caution and assess case by case or as we say in announcements, meeting by meeting, on the basis of available data.

Duong Hoa (VNA/Vietnam+)