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

  • Gross profit
    10.2
    billion euros
  • Taxes and profits allocated to the State
    7.3
    billion euros
  • Dividends paid to shareholders
    0.3
    billion euros
  • Staff
    6,671
    employees
    38%
    women
    62%
    men
  • Staff turnover
    280
    new hires
    202
    retirements/resignations
  • Offices in Italy and abroad
    39
    Branches in Italy
    3
    Delegations abroad, in London, New York and Tokyo
  • Staff seconded to foreign institutions and organizations
    14
    financial attachés
    109
    employees
    32
    employees at other supranational organizations
  • Remote working during the COVID-19 emergency
    59%
    average share of employees working remotely
    350,000
    online meetings
  • Website access statistics
    541,000
    users a month on average
    2.5
    million 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

  • Purchases under the Eurosystem's APP and PEPP programmes
    201.4
    billion euros
    +178
    billion euros compared with 2019
  • Monetary policy refinancing
    374
    billion euros of loans
    +70%
    compared with 2019
  • Collateral for refinancing operations and intraday credit
    436
    billion euros - total guarantees
    147
    billion euros - share of total guarantees relative to bank loans
    +93%
    compared with 2019
  • In-house Credit Assessment System (ICAS) for Italian non-financial companies
    4,000
    assessments
    +3%
    compared with 2019

Banknotes

  • Euro banknotes printed
    692
    million
  • Euro banknotes put into circulation
    2.45
    billion
  • Counterfeit euro banknotes
    65,200
    sent to law enforcement agencies

Payment systems

  • Payments settled on TARGET2
    345,000
    per day
    1,810
    billion euros
    16%
    of euro-area GDP
  • TARGET2-Securities operations
    687,500
    per day
    673
    billion euros
  • Payments in TIPS
    5
    seconds (maximum time for settling payments)
    4,000
    reachable financial intermediaries in Europe

Markets, payment system and payment instruments oversight

  • FinTech channel
    38,000
    contacts
  • Decisions on European and international oversight
    406
    to which the Bank contributed
  • CERTFin
    1,850
    reports
    +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

  • Contributions to the decisions of the Basel Committee, the EBA and the SSM
    3,100
    meetings, memos and written procedures
  • Supervisory interventions regarding banks and other financial intermediaries
    15,900
    analyses, meetings, intervention letters and main measures
  • Inspections
    67
    inspections
  • Sanctions
    51
    entities
    10
    milion euros

Crisis management

  • Compulsory administrative liquidation procedures managed
    23
    concerning banks
    22
    concerning other intermediaries
  • Resolution plans for Italian banks
    119
    less significant banks
    12
    significant banks (contributions to the SRB)

Financial stability and macroprudential policy

  • Contributions to the work on financial stability of the FSB, the ESRB and the ECB (FSC and MPF)
    1,100
    meetings, 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

  • ABF decisions
    27,400
    decisions
    74%
    largely in favour of customers
    29
    million euros awarded to complainants by the Panels
  • Complaints
    15,000
    complaints examined
    45%
    with an outcome wholly or partially in favour of customers
  • Amounts refunded to customers
    70
    million euros
    630
    million euros in the last six years

Financial education

  • Financial Education Month (October 2020)
    25
    online events
    3,900
    participants
  • Financial education publications distributed
    92,000
    total copies
    87,000
    copies for students
  • Work experience projects
    188
    online work experience projects offered
    1,850
    students involved
  • Financial education portal ‘L’Economia per tutti’
    20,000
    web 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

  • Papers published
    225
    publications
  • Research papers
    760,000
    downloads
  • Annual Report for 2019
    36,000
    downloads
  • Statistical publications
    1,100,000
    downloads
  • Sample surveys
    19,000
    questionnaires sent to firms and economic operators
    4,000
    personalized reports giving feedback to respondent firms
    7,000
    interviews on households’ economic conditions
  • Seminars and scientific conferences
    39
    seminars
    11
    scientific conferences
  • Training for the central banks of emerging countries
    102
    events
    500
    experts took part
    56
    participating 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

  • Collections and payments on behalf of central government and public entities
    107
    million transactions
    26
    million worth of transactions because of the COVID-19 emergency (equal to around €22.5 billion)
  • Siope+
    9,900
    entities
  • Placement of Italian government securities
    260
    transactions
    539
    billion euros

Information services

  • Central Credit Register
    340,000
    accesses
  • Interbank Register of Bad Cheques and Payment Cards
    32,000
    reports sent to applicants
  • Toll-free number for access to funding linked to the COVID-19 emergency
    1,200
    requests
  • Exchange rates portal
    40
    million 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

  • Extraordinary contributions because of the COVID-19 emergency
    85.5
    million euros
    28
    recipients
  • Contributions to socially useful initiatives
    4.3
    million euros
    144
    initiatives
  • Contributions to the economic debate and parliamentary hearings
    59
    speeches by Governing Board members and other Bank officials
    22
    parliamentary hearings
  • Internships
    170
    internships
    30
    universities involved
  • Research initiatives funded
    27
    research projects and fellowships

Environment

  • Carbon footprint of the euro-denominated equity portfolio
    -12%
    carbon intensity compared with 2019
    -24%
    energy intensity compared with 2019
  • CO2 emissions
    -28%
    total emissions compared with 2019
    -81%
    business travel emissions compared with 2019
    -49%
    commuter travel emissions compared with 2019