Bank of Italy published the speech by Alessandra Perrazzelli, Deputy General Director of the Bank of Italy, at General Council of the Italian Association of Foreign Banks (AIBE), which was held today in Milan.
In today’s speech they were addressed crucial issues relating to the role of foreign banks in the Italian economy and the challenges linked to technological evolution.
- Overview of the Foreign Banking Sector in Italy
The context of foreign banks in Italy is characterized by one notable heterogeneity, both in terms of access to the market and size and organizational models: despite some variations compared to the previous year, the overall number of foreign banks established remained substantially stable; one is highlighted increase in market share in financing for businesses and familiesas well as in consumer credit. However, there remains significant activity in the corporate & investment banking It is in the retail banking.
- Regulatory Framework and Supervision
At a European level, there is a significant change with the adoption of CRR3/CRD6 regulatory packagewhich aims to guarantee a minimum harmonization of supervisory regimes: in particular, a strengthening cooperation between authorities and greater control over third-country banks operating in the EU.
Furthermore, the introduction of new AI regulations, such asAI Actrequires a adaptation of governance paradigms to ensure transparency and compliance.
- Strategic Role of Technological Innovation
Artificial Intelligence (AI) is one strategic lever for the banking industry, with significant impacts on customer experience, operational processes and industry competitiveness; however, the adoption of AI also entails risks related to transparencyat the discrimination and to data security, which require careful management and regulation.
- Role of the Bank of Italy in Technological Innovation
The Bank of Italy is actively involved in regulation and promotion of technological innovation in the banking sector, through tools such as the “Fintech channel” and the “Milan Hub“, the Bank claims development of AI-based projects and promotes collaboration between players in the sector.
Recent European legislation on AI requires a strengthening governance paradigms it’s a greater transparency in decision-making processes.
Concluding today’s speech, the deputy director states that the adoption of AI represents a challenge and opportunity for the banking sectorwhich must balance innovation with regulatory compliance and customer protection.
The Continuous dialogue between supervisors and market participants is essential to ensure effective regulation and support a “good innovation” in the financial sector.
Tags: Perspectives Foreign Banks Italy role Bankitalia
