IMF to evaluate Italian financial sector
THE International Monetary Fund will evaluate Italy’s financial sector next year as part of oversight of countries considered linchpins of the global economy, an IMF spokeswoman says.
“The IMF will undertake a regular assessment of Italy’s financial sector in 2013,” she said in an email on Monday.
The evaluation is part of the Fund’s Financial Sector Assessment Program that in 2010 became mandatory for 25 countries with systemically important financial sectors, including Italy.
“Since that decision, these countries must undergo an assessment every five years,” she said.
The findings of the assessment should allow the IMF to identify the main risks weighing on financial stability in a country and judge whether the authorities have the capacity to respond to a crisis.
The findings usually are made public by the country after the review, the Washington-based institution said.
Since its prior evaluation in 2006, Italy has been under pressure from the eurozone sovereign debt crisis, spurring market concerns that have forced the country’s borrowing costs sharply higher.
In mid-July, Moody’s cut the credit ratings of 13 Italian banks, including UniCredit and Intesa Sanpaolo, just days after downgrading the country’s sovereign rating.
Last week, Moody’s said the outlook for the Italian banking sector remained “negative,” citing the country’s ongoing recession and eurozone-wide pressures.Financial News