Italian banks have not engaged in creative financing or other risky financial operations and thus are more sound that those in other western countries, Italian Economy Minister Giulio Tremonti said on Thursday.
In an appearance before parliament to illustrate the actions the government has taken to offset the repercussions in Italy of the global credit crisis, the minister added that the conservative "and even backward" structure of the Italian banking system had in the end protected it from the severe consequences of the creditcrunch suffered by banks in other countries.
The measures adopted by the government in a decree hammered out Wednesday night, Tremonti observed, "were timely and in line with the guidelines established by the European Union."
EU action to combat the crisis, he added, "has been coordinated as much as possible."
In its emergency decree, the Italian government confirmed a minimum state deposit insurance of 103,000 euros, authorized the Treasury Ministry and the Bank of Italy to temporarily acquire shares in troubled banks but without benefiting from any voting rights in shareholders' meetings, and said that state aid to financial institutions would be decided on a case-by-case basis.
In his report to Parliament, first to the Lower House and then the Senate, Tremonti confirmed that no protection would be given to those executives responsible for creating debt, as EU economic and finance ministers agreed earlier this week.
Source: Xinhua
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