Italy: bad loans coverage ratio 2010-2017
A recovering system
Italian banks have been growing in stability since 2014. The stocks of non-performing loans and bad loans started diminishing for the first time after the financial crisis. Capital adequacy increased and Common Equity Tier 1 ratio reached a value of 12.5 percent for the whole banking sector in 2017.
The digitalization of the banking system
Italian banks have been implementing a slow transition from the traditional banking business model to a more diversified one. By reducing the number of branches, banks are starting to rely on digital resources. The digitalization of the system has experienced a strong acceleration in the last five years. For example, the use of online banking grew steadily from 2007 to 2019.