The role of cost of capital for unlisted banks is becoming increasingly important as part of the consolidation process expected to take place in the Italian banking sector over the next few years. The results of the SREP may have a decisive influence on mergers and groupings among major unlisted banks, and any requests for capital add-ons could result in these banks turning to the market to increase their capital base.
One of the pillars of the Supervisory Review and Evaluation Process (SREP) is business model analysis. Three distinct business models (retail, investment, and diversified) seem to be emerging in Europe; in recent years retail banks, characterised by a traditional asset and liability structure, have shown resilient profitability in the face of a changing macroeconomic and financial environment.
Kara Wilson (firstname.lastname@example.org)
Puglia and Sicily are two regions of Southern Italy that have shown significantly disparate performances in the use of EU Structural Funds because of different needs and priorities taken into consideration by the two regions.
email@example.com, Xiaolin Su (firstname.lastname@example.org)
GDP growth in China has declined to 7% in the second quarter of 2015. Besides the official data release, some other macroeconomic indicators suggest a more difficult situation of China’s economic growth. Keqiang index has kept falling from 2014 onwards and domestic demand is weak as both investments and consumption year-on-year growth are decreasing. Perhaps the decreasing amount of imports is the most direct clue that Chinese economy is slowing down and shows the potential influence on the global economy.
email@example.com, Xiaoxiao Zhang (firstname.lastname@example.org)
In the aftermath of the recent financial crisis, the Greek crisis is having a significant effect on European peripheral countries’ stock market returns, especially in Italy.
The sudden collapse of the stock market in China in July has caused great losses for millions of investors. While China has achieved substantial progress in capital account liberalization, the international investment position suggests that the amount of foreign portfolio investment still remains small as capital controls are relatively heavy in the securities and bond markets. In light of this, the spillover effect of the stock crisis from China is limited.
An analysis of the main channels of intergenerational transmission of economic conditions: education, sector of activity and type of occupation, reveal a strong persistence between generations. Between 2000 and 2012 in Italy 51.7% of the children of graduate fathers are themselves graduates; 40% of the children of fathers employed in the public sector are employed in the same sector, and 56.7% of the children of blue collars are themselves blue collars.
During crisis years, Italian banks used costs toprotect profitability, but in 2014 the cost optimisation process came to ahalt. Without extraordinary interventions, cost reduction margins are limitedbecause significant efforts have already been made and because complianceexpenses have increased, and so has the need to invest in business development.
Enduring economic recovery in the medium term will require Italy to increase productivity. Job productivity also depends on the extent to which we succeed in increasing the skills of a population undergoing deep transformations as a result of decline and ageing.