Banks Need to Protect Themselves Much Better Against Risks From Italy to Trade
- Executives at IIF meeting debate threats to financial system
- Finance has been strengthened, not fixed, Saccomanni says
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The global banking industry needs to do more to protect itself against looming threats such as market turmoil, trade tensions, rising leverage and the implications of Italy’s rule-busting budget, according to executives gathered in Bali for the Institute of International Finance annual meetings.
“The recurring theme is that finance has been strengthened, but not quite fixed,” said Fabrizio Saccomanni, chairman of UniCredit SpA and a former deputy governor of the Bank of Italy, on one of the IIF panels. While a lot has been done to strengthen banks’ balance sheets, “the global factors of crisis are not really under control,” Saccomanni said.