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Economy and Banking Sector of Italy

Financial System Development

Financial System
67.6, 48th out of 144 countries
Banks' Soundness
52.5, 108th out of 144 countries

According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Italy is scored 67.6 out of maximum 100.0 and ranked 48th out of 144 analysed economies.

Financial Market Development in Italy.

Chart 1. Financial Market Development in Italy. Source: WEF.


Soundness of banks is scored 4.1 bringing Italy into the 108th place.

Soundness of Banks in Italy.

Chart 2. Soundness of Banks in Italy. Source: WEF.

Further Information

Banking Focus

Banks in Italy are mainly focused on the following areas:

  • cooperative retail banking
  • retail banking
  • regional universal banking

Banking Supervision

BANCA D' ITALIA

Banking Sector Structure

Number of Banks
506
Consolidated Assets (2018)
2,635.29 bln EUR  (+0.08%)
Recent Changes (2018)
new banks: 3, closed banks: 38

Currently there are 506 credit institutions operating in Italy.

In 2018 consolidated banking assets in Italy were 2,635.29 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.

Consolidated banking assets in Italy.

Chart 3. Consolidated banking assets in Italy.

Recent structural changes (2013 - 2018) of the banking sector of Italy are summarised in Table 1.

201320142015201620172018
Number of Opened Banks58181483
Number of Closed Banks192932576538

Table 1. Recent structural changes in the banking sector of Italy.

The list of the most recently opened banks in Italy is provided in Table 2.

All the credit institutions operating in Italy can be classified into several categories. Table 3 summarises the number of banks in each category.

CategoryNumber of Banks
Banks122
Branches of foreign banks84
Central banks1
Cooperative banks283
Savings banks16

Table 3. Number of banks by category in Italy.

There are 85 branches of foreign banks from 18 different countries in Italy. Table 4 shows 10 countries having the biggest number of branches in Italy.

Country of OriginNumber of Branches
FR France23
DE Germany15
LU Luxembourg10
GB United Kingdom8
NL Netherlands6
AT Austria4
ES Spain3
IE Ireland3
US United States2
JP Japan2

Table 4. Number of branches of foreign banks in Italy grouped by country of origin.

Deposit Guarantee Scheme

Maximum Protected Amount
100,000 EUR

Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.

From a depositor's point of view it is important to know:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Italy are summarised in Table 5.

Maximum Protected Amount
100,000 EUR
Scheme Participants
all credit institutions operating in Italy
branches of non-EU banks
branches of Italian banks abroad
Scheme Exemptions
branches of EU-banks (covered by their home countries)
Eligible Depositors
natural persons
legal entities
Covered Accounts
current accounts
cash accounts
time deposits
nominative certificates of deposit
nominative saving books and banking drafts
prepaid cards associated with IBAN
Non-Covered Accounts
bearer deposits
prepaid cards not associated with IBAN
Paid In Currency
EUR

Table 5. Deposit guarantee scheme in Italy.

Further Information

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local Currency (Euro)
Aa3 (high grade)
Foreign Currency
Aa3 (high grade)

Local currency (Euro) deposit ceiling for Italy is set to Aa3 (high grade), foreign currency deposit ceiling is Aa3 (high grade).

Deposit Rates

Average Deposit Rate (Mar 2020, EUR)
1.55 %  (Feb 2020: 1.43 %)
In March 2020, an agreed annualised deposit rate in local currency (Euro) of new contracts with agreed maturity up to 1 year between credit institutions and households was 1.55% which was above the Euro Area average (0.31%).
Deposit Rates in Italy.

Chart 4. Deposit Rates in Italy. Source: ECB.

Further Information