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ABI and the vision to restore confidence

On 5 May in Rome to discuss the appointment of new rules to restore confidence in the market.
In recent months a light at the end of the tunnel of the crisis begins to see, and now the market needs support to resume contacts between people.

A very interesting part of the ABI press release is this:

The crisis has highlighted the need to reform the rules and supervisory practices at the global level and to extend the scope of macro-prudential level; the goal was to help supervisors in a position to monitor cross-border operators in their entirety and to ensure that there are uncontrolled operators in all sectors.

These requirements are especially felt at European level, as evidenced by the debate initiated by the Commission following the publication of the recommendations to address the weaknesses highlighted by the crisis of European regulation. The objectives to be pursued in the near future are therefore associated with the need to centralize with a powerful European supervisory architecture, at both micro and macro-prudential and to extend its application to those market segments that are currently not regulated.

The financial derivative, the one that has developed from years 80 and 90, is in fact escaping the rules. We must not forget the benefits that these tools have had and for business, derivatives represent an extraordinary achievement, are produced by covering risks such as interest rates and exchange rates. Should also promote transparency levels for the prevention of risks in the banking sector and to strengthen relations of trust with customers.

You could not do what you're trying to do now, before the crisis? Or because no one thought everything went smoothly?

If the financial derivative first covered the major risks of some companies, it was more than understandable that a tool has not only an asset but also negative.

In fact while it regulates itself and allowed various combinations of risk and rates, on the other side slowly escaped regulatory control and usher in the subprime mortgage crisis.

I hope that in future such incidents happen again and quickly find new rules (at European level) for this type of financial market.

However, the crisis does not recur in the same manner as never before, history tells us that despite the consequences are similar and can easily be studied; cases are always variable and not always predictable in a timely manner.