The "Financial Stability Committee" (Comitato per la salvaguardia della stabilità finanziaria - CSSF) met today to examine the latest developments in the international and domestic financial market turmoil.
The meeting, chaired by the finance minister Giulio Tremonti, was attended by the Governor of the Bank of Italy Mario Draghi, the general manager of the Treasury Vittorio Grilli, the chairman of Consob Lamberto Cardia, the chairman of Isvap Giancarlo Giannini.
The Committee examined the analyses carried out by supervisory authorities in the light of the effects produced by the co-ordinated action that was taken in mid-October. The analyses highlighted the solidity of the Italian banking system as a whole thanks to the prudent operational model applied by intermediaries and to lesser financial leverage.
The massive Eurosystem cash injection offered at a 3.75% rate pushed down Euribor 3-month rates to below 5%. Nevertheless, declining quotations as well as the persisting turmoil in the interbank market continue to be a criticality. Up to the present, the credit granted by the Italian banking system to families and companies, while slowing down, has continued to rise.
The Committee agreed on the need to monitor developments closely and to hold regular updates.