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.
Chart 1. Financial Market Development in Italy. Source: WEF.
Soundness of banks is scored 4.1 bringing Italy into the 108th place.
Chart 2. Soundness of Banks in Italy. Source: WEF.
Banks in Italy are mainly focused on the following areas:
Currently there are 501 credit institutions operating in Italy.
In 2019 consolidated banking assets in Italy were 2,878.14 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Italy.
Recent structural changes (2013 - 2018) of the banking sector of Italy are summarised in Table 1.
|Number of Opened Banks||5||8||18||14||8||3|
|Number of Closed Banks||19||29||32||57||65||38|
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.
|Bank of America Merrill Lynch International DAC||December 2018|
|J.p. Morgan Ag||November 2018|
|Guber Banca S.p.a.||May 2018|
|Grenke Bank Ag||June 2017|
|National Westminster Bank Plc.||May 2017|
|The Bank of New York Mellon Sa/nv||April 2017|
|Toyota Material Handling Commercial Finance Ab||March 2017|
|Kbc Bank N.v. Italia||March 2017|
|Banco Bpm SpA||January 2017|
|Romagnabanca Credito Cooperativo Romagna Est e Sala di Cesenatico S.c.||January 2017|
Table 2. The most recently opened banks in Italy.
All the credit institutions operating in Italy can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||84|
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 Origin||Number of Branches|
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:
All these details about deposit guarantee scheme in Italy are summarised in Table 5.
Table 5. Deposit guarantee scheme in Italy.
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) deposit ceiling for Italy is set to Aa3 (high grade), foreign currency deposit ceiling is Aa3 (high grade).
Chart 4. Deposit Rates in Italy. Source: ECB.