The Bank of Italy has published a methodological update to the composite financial stress indicator it has used for systemic-risk monitoring of the Italian economy since 2019, introducing refinements intended to improve the measure’s informational relevance and consistency. The update changes the indicator’s composition by adding new variables and removing others, and revises the classification of the underlying components that feed into the composite measure. The recalibration is intended to capture financial stress conditions more accurately and make the contribution of each institutional sector to overall financial stability risks more traceable.
Bank of Italy 2026-02-02
Bank of Italy recalibrates its composite financial stress indicator for Italy
The Bank of Italy has updated its composite financial stress indicator for systemic-risk monitoring, refining its composition and classification to enhance informational relevance and consistency. The recalibration aims to better capture financial stress conditions and trace the contribution of each institutional sector to overall financial stability risks.