The "Financial Stability Committee" (Comitato per la salvaguardia della stabilità finanziaria - CSSF) met today to examine the latest developments in the international financial market turmoil and the repercussions this may have on the financial system and on savers in Italy.
With a view to ensuring the stability of the financial system, the meetings of the Committee - in line with the recommendations set by ECOFIN - are aimed at defining forms of cooperation and of exchange of information and views between the sector's supervisory authorities and the Ministry of the Economy and Finance.
The meeting was attended by the economy and finance minister Giulio Tremonti, the general manager of the Treasury Vittorio Grilli, the general manager of the Bank of Italy Fabrizio Saccomanni, the chairman of Isvap Giancarlo Giannini, the chairman of Consob Lamberto Cardia.
The Committee examined the initiatives outlined in the United States to tackle the crisis and, with a particular regard for the events concerning the Lehman Brothers, to assess the effects these may have on domestic intermediaries.
It was significantly observed that the sudden exit of an operator the size of Lehman Brothers did not affect the functioning of the financial markets and of the payment and settlement systems.
The Committee examined the evaluations made by European banking supervisory authorities according to which the exposures to Lehman Brothers were substantially manageable if compared to total bank assets and capitals.
The impact on the Italian banking system was substantially limited. According to a survey conducted by the Bank of Italy, the exposure to the American investment bank of Italy's 20 leading banking groups amounted to 0.5% of their Tier 1 capital, a value that is significantly lower than the European average.
A survey conducted by Consob showed that from a sample comprising forty non-banking and non-insurance listed issuing companies some two-thirds did not have any exposure to the Lehman Brothers group, while the risks for the other companies appeared to be limited. The total exposure of the companies surveyed amounted to € 120 million in derivatives and € 14 million in portfolio titles. The chairman of Consob also outlined the measure - taken by the Commission following a consultation with other European Authorities - to restrict short sales with a view to combat speculation in domestic markets.
Isvap data concerning the market as a whole also show that the exposure of the Italian insurance system to Lehman Brothers is limited. Direct exposure of companies that hold assets in the American merchant bank, in fact, amounted to € 1.14 billion, equal to 0.4% of technical reserves. Lehman Brothers assets are present in products - principally index-linked policies - whose investment risks are borne by policyholders.
The Committee agreed on the need to monitor developments closely and to hold regular updates.