Report on Operations and Activities of the Bank of Italy – Key figures for 2020
Unless otherwise specified, the data refer to the period from 1 January to 31 December 2020
Contents
The big picture
In 2020, the Bank of Italy allocated a total of €7.3 billion in net profits and taxes to the State.
During the pandemic emergency period, the Bank adopted extraordinary measures to ensure the performance of its functions at the service of the community.
A significant number of employees mainly worked remotely, thanks to the digitalization of work processes and the longstanding availability of technological devices. The activities to be done in the workplace were modified so that they can be carried out safely and in compliance with strict health protocols.
Following a long period in which staff numbers declined, there was a slight increase at the end of 2020. The number of employees seconded to foreign organizations remained the same.
Figures
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Gross profit10.2billion euros
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Taxes and profits allocated to the State7.3billion euros
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Dividends paid to shareholders0.3billion euros
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Staff6,671employees38%women62%men
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Staff turnover280new hires202retirements/resignations
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Offices in Italy and abroad39Branches in Italy3Delegations abroad, in London, New York and Tokyo
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Staff seconded to foreign institutions and organizations14financial attachés109employees32employees at other supranational organizations
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Remote working during the COVID-19 emergency59%average share of employees working remotely350,000online meetings
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Website access statistics541,000users a month on average2.5million downloads
Money
The Bank of Italy collaborated with the Eurosystem in drawing up extraordinary monetary policy measures to provide liquidity to the markets and to support lending to households and firms during the pandemic crisis.
The purchases of public and private sector securities as part of the Asset Purchase Programme (APP) and the Pandemic Emergency Purchase Programme (PEPP) together with the additional refinancing operations brought the Bank’s operativity to much higher levels than in previous years.
To respond to the public’s demand for cash, the Bank guaranteed the production of banknotes and continuity in cash distribution throughout Italy from the very beginning of the public health emergency.
The Bank continued its commitment to managing payment services. In TARGET2, the total value of operations settled rose slightly; in TARGET2-Securities, the volumes grew markedly in conjunction with the financial tensions caused by the pandemic; and in TIPS, the service for settling instant payments in real time, the number of reachable European banks increased.
Dialogue with market operators was stepped up, with the aim of promoting innovation in the payments industry and facilitating concrete benefits for the financial system, consumers and firms. The Bank of Italy strengthened its commitment to the development of digital financial services (FinTech) and extended its monitoring to cover cyber threats.
Figures
Monetary policy
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Purchases under the Eurosystem's APP and PEPP programmes201.4billion euros+178billion euros compared with 2019
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Monetary policy refinancing374billion euros of loans+70%compared with 2019
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Collateral for refinancing operations and intraday credit436billion euros - total guarantees147billion euros - share of total guarantees relative to bank loans+93%compared with 2019
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In-house Credit Assessment System (ICAS) for Italian non-financial companies4,000assessments+3%compared with 2019
Banknotes
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Euro banknotes printed692million
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Euro banknotes put into circulation2.45billion
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Counterfeit euro banknotes65,200sent to law enforcement agencies
Payment systems
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Payments settled on TARGET2345,000per day1,810billion euros16%of euro-area GDP
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TARGET2-Securities operations687,500per day673billion euros
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Payments in TIPS5seconds (maximum time for settling payments)4,000reachable financial intermediaries in Europe
Markets, payment system and payment instruments oversight
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FinTech channel38,000contacts
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Decisions on European and international oversight406to which the Bank contributed
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CERTFin1,850reports+54%compared with 2019
The financial system
Supervision of banking and financial intermediaries focused on preventing and containing the impact of the COVID-19 emergency on the stability and smooth functioning of the banking and financial system. There were more supervisory actions, such as analyses, meetings, measures and intervention letters.
The restrictions imposed by the pandemic led to hybrid inspections of banks, consisting of remote analyses combined with on-site inspections.
The number of sanctions proceedings was virtually the same as in 2019, although there was an increase in the total amount of sanctions imposed.
Crisis management was characterized by the increase in the number of resolution plans for Italy’s less significant banks; the number of compulsory administrative liquidation procedures remained stable.
As regards financial stability, the pandemic crisis meant that the macroprudential authorities had to adopt numerous measures to sustain the flow of credit. The Bank stepped up its participation in the work of international and European organizations in this area.
Figures
Supervision of banking and financial intermediaries
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Contributions to the decisions of the Basel Committee, the EBA and the SSM3,100meetings, memos and written procedures
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Supervisory interventions regarding banks and other financial intermediaries15,900analyses, meetings, intervention letters and main measures
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Inspections67inspections
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Sanctions51entities10milion euros
Crisis management
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Compulsory administrative liquidation procedures managed23concerning banks22concerning other intermediaries
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Resolution plans for Italian banks119less significant banks12significant banks (contributions to the SRB)
Financial stability and macroprudential policy
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Contributions to the work on financial stability of the FSB, the ESRB and the ECB (FSC and MPF)1,100meetings, memos and written procedures
Consumer protection
The Bank of Italy strengthened its commitment to protecting the customers of banks and financial firms by creating the Consumer Protection and Financial Education Directorate General. Monitoring the behaviour of banking and financial intermediaries is intended to verify compliance with the regulations on consumer protection. In confirmed cases of payments of fees that were not owed, intermediaries also refunded their customers.
During the pandemic crisis, the Banking and Financial Ombudsman (ABF) continued with its activity. The number of decisions, largely in favour of customers, was more or less the same as in 2019.
The action of the Bank of Italy facilitated dialogue between banks and customers to resolve the issues raised in complaints, which in 45 per cent of cases were settled wholly or partly in favour of the customer. The increase in the number of complaints is largely linked to problems in accessing the support measures introduced because of the public health emergency.
To raise financial education levels, the initiatives aimed at the general public or at specific population sectors were enhanced: the portal called ‘L’Economia per tutti’ (Economics for Everyone), teaching materials for schools, ‘Financial Education Month’, themed events, webinars and work experience projects for students, which were also carried out online.
Figures
Consumer protection
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ABF decisions27,400decisions74%largely in favour of customers29million euros awarded to complainants by the Panels
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Complaints15,000complaints examined45%with an outcome wholly or partially in favour of customers
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Amounts refunded to customers70million euros630million euros in the last six years
Financial education
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Financial Education Month (October 2020)25online events3,900participants
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Financial education publications distributed92,000total copies87,000copies for students
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Work experience projects188online work experience projects offered1,850students involved
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Financial education portal ‘L’Economia per tutti’20,000web pages viewed on average per month
Research and statistics
The high levels of analysis and research in the fields of economics, statistics and law led to an increase in the number of papers published. There were various studies on the effects of the pandemic on the economy and on the financial system.
The in-depth papers published in the collection of COVID-19 Notes informed the wider debate.
Two new series of publications were launched, one on the labour market and one on markets, infrastructures and payment systems. Another important research area is the impact of climate change on the economic and financial system.
Compared with the previous year, the number of questionnaires increased for the sample surveys sent to firms, economic operators and households.
There was an increase in the number of training schemes for the central banks of emerging countries, which saw greater participation thanks to the use of online formats.
Figures
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Papers published225publications
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Research papers760,000downloads
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Annual Report for 201936,000downloads
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Statistical publications1,100,000downloads
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Sample surveys19,000questionnaires sent to firms and economic operators4,000personalized reports giving feedback to respondent firms7,000interviews on households’ economic conditions
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Seminars and scientific conferences39seminars11scientific conferences
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Training for the central banks of emerging countries102events500experts took part56participating countries
Services for the State and for the general public
The volume of services provided to the State increased, such as the collections and payments carried out on behalf of central government and other public entities, and the placement of government securities.
Via the ‘Online services for the public’ platform, the Bank gives the public the chance to use information services easily and quickly, such as access to data held by the Central Credit Register and the Interbank Register of Bad Cheques and Payment Cards. The number of requests for these services rose compared with 2019.
There is now a help desk along with the Bank of Italy’s toll-free number (800 19 69 69) for assistance in the event of problems in accessing the funding to support households and firms linked to the COVID-19 emergency.
Figures
Services for the State
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Collections and payments on behalf of central government and public entities107million transactions26million worth of transactions because of the COVID-19 emergency (equal to around €22.5 billion)
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Siope+9,900entities
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Placement of Italian government securities260transactions539billion euros
Information services
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Central Credit Register340,000accesses
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Interbank Register of Bad Cheques and Payment Cards32,000reports sent to applicants
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Toll-free number for access to funding linked to the COVID-19 emergency1,200requests
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Exchange rates portal40million pages viewed
Commitment to culture, society and the environment
The Bank of Italy disbursed €85.5 million of extraordinary contributions to support the authorities and entities involved in managing the public and social health emergency. It also funded specific socially useful initiatives.
It continued with its commitment to high-level consultancy to the Parliament, to sharing the results of its research, to enhancing the Bank’s artistic, bibliographic and archival heritage, to training young people and to promoting culture.
The carbon footprint of its equity portfolio improved; there was a further integration of sustainability criteria into financial investments, not only to all equity instruments but also to corporate bonds. There were also purchases of green bonds in dollars and in euros.
There were further reductions in CO2 emissions thanks to the decrease in staff commuting and in business travel during the period of the epidemiological emergency.
Figures
Culture and society
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Extraordinary contributions because of the COVID-19 emergency85.5million euros28recipients
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Contributions to socially useful initiatives4.3million euros144initiatives
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Contributions to the economic debate and parliamentary hearings59speeches by Governing Board members and other Bank officials22parliamentary hearings
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Internships170internships30universities involved
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Research initiatives funded27research projects and fellowships
Environment
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Carbon footprint of the euro-denominated equity portfolio-12%carbon intensity compared with 2019-24%energy intensity compared with 2019
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CO2 emissions-28%total emissions compared with 2019-81%business travel emissions compared with 2019-49%commuter travel emissions compared with 2019