The Italian Institute for Insurance Supervision published an update on a meeting of Italy’s Macroprudential Policy Committee, chaired by the Governor of the Bank of Italy and attended by the heads of Consob, Covip and IVASS and a representative of the Ministry of Economy and Finance. The Committee assessed Italy’s financial system as broadly stable despite a global environment marked by significant risks, and launched work to develop an analytical framework for its statutory tasks on assessing risks arising from the application of fallback clauses in indexed contracts and financial instruments. The review noted supportive domestic macroeconomic conditions, limited spillover so far to Italian markets from volatility triggered by the United States’ April tariff announcement, and ongoing uncertainty around global policies, cryptoasset interconnections and heightened geopolitical tensions, with Italy’s high public debt flagged as a potential amplifier of shocks. Banks were described as highly profitable and well-capitalised, with moderate signs of worsening credit quality, while insurance sector conditions were favourable, supported by strong capital positions and improved liquidity; risks in asset management and pension funds were described as contained. Household finances were judged solid, with low indebtedness and higher financial wealth in 2024, and the Committee said it is monitoring the market for certificates after growth in purchases stopped in the second half of last year. It also welcomed debate on simplifying European financial regulation, while warning against deregulation or material divergence from global standards. The Committee said the minutes of the meeting will be published in a subsequent communication.
Italian Institute for Insurance Supervision (IVASS) 2025-06-13
Italian Institute for Insurance Supervision reports Macroprudential Policy Committee sees the financial system as stable and starts work on a benchmark fallback clause risk framework
The Italian Institute for Insurance Supervision reported that Italy's Macroprudential Policy Committee assessed the financial system as broadly stable despite global risks. The Committee began developing an analytical framework for assessing risks from fallback clauses in indexed contracts and financial instruments. It highlighted supportive domestic conditions, strong banking and insurance sectors, and solid household finances, while cautioning against deregulation in European financial regulation.