Our Role

Banca d'Italia's main tasks

The main functions of Banca d'Italia are designed to ensure monetary and financial stability, indispensable conditions for lasting economic growth. The Bank contributes to the decisions on the single monetary policy of the euro area and performs the tasks entrusted to it as a national central bank in the Eurosystem. It may carry out foreign exchange operations in accordance with the rules laid down by the Eurosystem. It manages its own foreign currency reserves and a portion of those of the ECB on the latter's behalf.

It is responsible for producing the quantity of euro banknotes established by the Eurosystem, managing the currency in circulation and combating counterfeiting. The Bank promotes the smooth functioning of the payments system through its direct management of the main circuits and by exercising oversight powers of guidance, regulation and control. This activity, coupled with market supervision, is intended more generally to contribute to the stability of the financial system and foster effective monetary policy. The Bank performs services on behalf of the State by carrying out treasury operations (public sector receipts and disbursements), acting as agent for the public debt, and combating usury.

In order to increase the effectiveness of its performance of monetary policy tasks and other institutional functions, the Bank undertakes a large volume of analysis and research in the economic, financial and legal fields.

As the national supervisory authority, the Bank seeks to ensure the sound and prudent management of intermediaries, the overall stability and efficiency of the financial system and compliance with the rules and regulations of those subject to supervision. Banca d'Italia is the designated National Competent Authority (NCA) under the Single Supervisory Mechanism (SSM). In order to protect the customers of banks and financial institutions, the Bank supervises how financial intermediaries treat customers, households and firms, in terms of complying with the rules on transparency and fair conduct, strengthens the instruments to protect individual customers, and aims to improve the level of financial literacy across the country. As National Resolution Authority, the Bank also carries out the preliminary and operational tasks envisaged by the Single Resolution Mechanism for European banks in difficulty with the aim of preserving financial stability in the euro area.

The activities of Banca d'Italia include numerous international commitments concerning central bank functions and financial stability in particular.

Italy's Financial Intelligence Unit (FIU) was established at Banca d'Italia and, in a position of complete autonomy, is responsible for combating money laundering and terrorist financing.

The implementation of monetary policy and emergency liquidity assistance

Banca d'Italia contributes to formulating monetary policy for the euro area through its Governor, who sits on the Governing Council of the European Central Bank (ECB). Under the principles of operational decentralization and of subsidiarity established at European level, Banca d'Italia participates in the implementation of monetary policy.
FX market operations

In accordance with the Treaty on the Functioning of the European Union (TFEU), Banca d'Italia may be called upon to intervene on the foreign exchange market together with the other national central banks (NCBs) and the European Central Bank (ECB). Banca d'Italia monitors the foreign exchange market on an ongoing basis, analyses the performance of the main currencies, and publishes the euro foreign exchange reference rates and the exchange rate quotations for all the currencies with an ISO code against the euro and the US dollar on a daily basis.
Foreign currency and gold reserves, investment portfolio and risk management

Banca d'Italia manages Italy's official reserves and, like the other Eurosystem national central banks (NCBs), manages a part of the European Central Bank's reserves (ECB). The official reserves help to maintain the credibility of the European System of Central Banks (ESCB) and may be used to intervene in the foreign exchange market; the national reserves enable Italy to fulfil its commitments vis-à-vis international financial institutions.
Euro issuance

Banca d'Italia issues euro banknotes in accordance with the principles and rules established within the Eurosystem, produces the quantity of euro banknotes assigned to it, puts them into circulation, withdraws worn notes, takes part in the search for and experimentation with new security features and contributes to drawing up common standards for the quality of the notes in circulation and the fight against counterfeiting.
Payment systems operations

The Eurosystem promotes the efficiency, stability and safety of the payment system in various ways, ranging from the direct provision of payment services to the fostering of cooperation between market players and the activities of moral suasion, regulation and control. Banca d'Italia contributes to achieving these goals by devising strategic policies for euro-area payment systems and by devoting significant human and technological resources to construct and manage these infrastructures.
Market and payment system oversight

The financial system is made up of three parts: institutions, markets, and market infrastructures for handling payments and for the clearing and settlement of financial instruments. By law, Banca d'Italia is also tasked with supervising, regulating and drawing up the guidelines for payment systems, for the settlement of securities transactions, for payment instruments, and for markets that are important for monetary policy and financial stability.
Treasury services

Banca d'Italia performs treasury services on behalf of the State. In this capacity, it executes payment orders issued by general government bodies and collects all the amounts due, both domestically and cross-border. Collections and payments are settled on a government account held with the Bank, called the 'Treasury single account'.
Government bond auctions and money market operations for the Treasury

Banca d'Italia carries out government bond auctions on behalf of the Ministry of Economy and Finance (MEF) and publishes the results in press releases and summary tables available on its website (only in Italian), as well as via the main financial information providers.
Economic research and international relations

Economic and statistical research and analysis provide fundamental support for the decisions that Banca d'Italia takes in the exercise of its institutional activity, which include the definition of monetary policy through the Governor's participation in the ECB Governing Council; financial stability policies; its participation in the leading international organizations and institutions; and the formulation and assessment of economic policy proposals.
Banking and financial supervision

Banca d'Italia exercises banking and financial supervisory powers over banks, banking groups, financial intermediaries, electronic money institutions and payment institutions. Its supervisory powers have their legal basis in a regulatory framework defined by international, European Union and national laws.
Customer protection and financial education

Banca d'Italia has different means in place to protect the customers of banking and financial intermediaries. It monitors the drafting of legislation, both national (primary legislation) and international, and it oversees the drawing up and review of secondary legislation for safeguarding customers. It monitors compliance with regulations by intermediaries, ensures the availability of individual protection mechanisms and promotes financial education initiatives to raise public awareness.
Resolution and crisis management

In implementing the European framework on bank crisis management, Banca d'Italia has been appointed National Resolution Authority (NRA) for Italy. A Resolution and Crisis Management Unit was set up, which performs investigative and operational tasks under the Single Resolution Mechanism, cooperates with the Single Resolution Board, and manages the liquidation and resolution procedures for banks and financial intermediaries.
Anti-money laundering supervision and regulation

Money laundering and terrorism financing are a serious threat to both the economy and people's security, and can have destabilizing effects on the financial system. In Italy, the anti-money laundering rules are contained in Legislative Decree 231/2007, which entrusts Banca d'Italia with the regulation and supervision of intermediaries for anti-money laundering purposes and for combating the financing of terrorism. The same decree also provided for the creation of the Financial Intelligence Unit (UIF).
Financial stability

The financial system is a complex infrastructure that allows households, firms, general government entities and other financial agents to make payments, transfer resources and manage risks. Ensuring the proper functioning of this infrastructure is the task of the authorities responsible for financial stability. Under Italian legislation, Banca d'Italia is responsible for safeguarding the stability of the national financial system.