Report on Operations and Activities of the Bank of Italy – Key figures for 2022

Unless otherwise specified, the data refer to the period from 1 January to 31 December 2022

Contents

    The big picture

    In 2022, the Bank of Italy allocated a total of €3 billion in net profits and taxes to the State. The general risk provision was increased by €2.5 billion to €35 billion, which can amply cover the gross losses that are expected to emerge over the next two years. In 2022, the Bank’s operating costs, based on cost accounting criteria, amounted to €1,664 million, up by 0.2 per cent in real terms compared with the previous year. Over the last 15 years, these costs fell by 7.8 per cent, partly as a result of the digitalization of workflows, the organizational changes and the streamlining of the operational processes.

    In its Strategic Plan for 2023-2025, the Bank has outlined its priorities within a holistic and consistent framework for governing human, technological and financial resources, with a stronger commitment to supporting innovation and the Bank’s role at European and international level. On 1 April 2022, the Bank launched a new hybrid work model combining remote and on-site working. In 2022, 42 per cent of workdays were worked remotely, compared with 59 per cent in 2021.

    At the end of 2022, staff numbers were up on the previous year. There are plans to increase the workforce over 2023-25 as well, in order to support the Bank’s participation in major Eurosystem projects and to strengthen some institutional activities. However, current and projected staff numbers are well below those of 15 or 20 years ago.

    The average monthly users of the Bank’s website and the downloads of the leading institutional and research publications are growing.

    Indicators

    • Gross profit
      €5.9
      billion
    • Taxes and profits allocated to the State
      €3.0
      billion
    • Dividends paid to shareholders
      €0.4
      billion
    • Staff
      6,840
      employees
      37%
      female
      63%
      male
    • Staff turnover
      356
      new hires
      145
      retirements/resignations
    • Bank offices in Italy and abroad
      38
      branches in Italy
      3
      delegations abroad, in London, New York and Tokyo
    • Staff seconded to foreign institutions and organizations
      14
      financial attachés
      129
      employees at the ECB and SSM
      48
      employees at other supranational organizations
    • Remote working
      42%
      average share of days worked remotely
      430,000
      online meetings
    • Website access statistics
      889,000
      users a month on average
      2.2
      million downloads

    Money

    The Bank of Italy has worked with the ECB’s Governing Council to draw up and implement monetary policy measures. In 2022, the process of monetary policy normalization accelerated with key interest rate hikes and the conclusion of net asset purchases. The latter were terminated at the end of March 2022 under the Pandemic Emergency Purchase Programme (PEPP) and on 1 July under the Asset Purchase Programme (APP). Under the two programmes, the Bank bought a total of €106.3 billion in securities, compared with €186.4 billion in 2021. The liquidity provided to credit institutions through refinancing operations – which are backed by financial assets assessed as eligible by the Bank – also declined, as a result of the early repayments of third-series Targeted Longer-term Refinancing Operations (TLTRO III).

    The Bank has ensured the production of banknotes and met the public’s demand for cash across the country, by managing banknote sorting and the continuity of distribution at national level and in the Eurosystem countries.

    The Bank continued managing payment services. The number and value of transactions in TARGET2 increased; the volumes settled in TARGET2-Securities continued growing; the number of transactions settled in TARGET instant payment settlement (TIPS) rose, as did the number of connected European financial intermediaries. On 20 March 2023, the project for the functional and technological consolidation of the TARGET2 and TARGET2-Securities platforms was completed. The operations of the three innovation enablers managed by the Bank – the FinTech channel, Milano Hub and the Regulatory sandbox – were strengthened to support the digital development of financial services. In addition, the Bank has stepped up its cooperation with technology and network service providers, as well as strengthening its international commitments for digital financial and payment services, with further action to increase the resilience of financial services and infrastructure to operational risks, including cyber threats.

    Indicators

    Monetary policy

    • Purchases made by the Bank of Italy under the APP and PEPP programmes
      €106.3
      billion
      €696
      billion (total portfolio at year-end)
    • Monetary policy refinancing
      €356
      billion
      64
      transactions
    • Collateral for refinancing operations and intraday credit
      €433
      billion worth of total collateral
      €167
      billion
      worth of bank loans as collateral
    • In-house Credit Assessment System (ICAS) for Italian non-financial corporations
      350,000
      assessments based on the statistical model
      4,000
      assessments also based on a subsequent qualitative and quantitative review
    • Contributions to the decisions of Eurosystem Committees
      451
      written procedures

    Banknotes

    • Euro banknotes printed
      807
      million banknotes
    • Euro banknotes put into circulation
      2.28
      billion banknotes
    • Counterfeit euro banknotes
      61,600
      banknotes sent to law enforcement agencies
    • Contributions to the decisions of Eurosystem Committees
      250
      written procedures

    Payment systems

    • Payments settled in TARGET2
      399,000
      per day
      €2,220
      billion
      17%
      of euro-area GDP
    • Transactions in TARGET2-Securities
      708,000
      per day
      €717
      billion
    • TIPS payments
      462,000
      per day
      €344
      million
      7,980
      connected financial intermediaries in Europe
    • Contributions to the decisions of Eurosystem Committees
      342
      written procedures

    Markets, payment system and payment instruments oversight

    • Hits on the Bank of Italy website
      16,950
      FinTech channel
      16,387
      Milano Hub
      18,860
      Regulatory sandbox
    • Meetings with business managers
      329
    • Contributions to the decisions of Eurosystem Committees
      360
      written procedures
    • CERTFin
      2,853
      reports
    • Participation in other supranational organizations
      490
      written procedures and speaking notes

    The financial system

    The number of supervisory actions on banks and non-banking intermediaries (e.g. analyses, discussions, measures and intervention letters) has decreased slightly, though it remains high. Both the number and total amount of sanctions declined compared with 2021, reflecting changes in the types of entities sanctioned. The number of new authorized financial intermediaries was down, mainly due to the effects of Brexit fading away and to the entry into force of the Revised Payment Services Directive (PSD2, Directive (EU) 2015/2366).

    In the area of anti-money laundering supervision, meetings with corporate representatives and intervention letters intensified in 2022. Moreover, as in 2021, the Bank (in its role as lead supervisor), organized and ran the committees for anti-money laundering (AML) initiatives and for countering the financing of terrorism (CFT). It also participated in AML/CFT meetings as host supervisor, though less frequently than in 2021.

    As regards crisis management, the number of compulsory administrative liquidation procedures were broadly the same. The drafting of resolution plans for significant and less significant banks continued; for the latter, with the 2022 cycle, substantial coverage of the whole system was achieved.

    In the area of financial stability, the Bank worked with international and European institutions on systemic risk analysis and the coordination of financial stability policies.

    Indicators

    Supervision of banking and financial intermediaries

    • Contributions to the decisions of the Basel Committee, the EBA and the SSM
      3,000
      meetings, contributions, notes and written procedures
    • Supervisory actions on banks and non-banking intermediaries
      15,600
      analyses, discussions, intervention letters and measures
    • Inspections
      116
      inspections
    • Sanctions
      41
      entities
      €2.7
      million
    • New authorized intermediaries
      22

    SUPERVISION FOR THE PURPOSES OF COUNTERING MONEY LAUNDERING AND THE FINANCING OF TERRORISM

    • Contributions to the decisions of the EBA’s AMLSC
      6
      meetings
    • Supervisory actions on banks and non-banking intermediaries
      128
      meetings with corporate representatives
      166
      intervention letters
    • Participation in AML/CFT meetings
      5
      as lead supervisor
      27
      as host supervisor

    Crisis management

    • Compulsory administrative liquidation procedures managed
      20
      banks
      20
      other intermediaries
    • Compulsory liquidations of funds managed by asset management companies
      18
      funds
    • Voluntary liquidations supervised
      3
      banks
      17
      other intermediaries
    • Resolution plans for Italian banks
      115
      less significant banks
      12
      significant banks (contributions to the SRB)
    • Contributions to the work of the SRB, the EBA, the SSM and the FSB
      347
      meetings, notes and written procedures

    Financial stability and macroprudential policy

    • Contributions to the work on financial stability of the FSB, the ESRB and the ECB (FSC and MPF)
      1,014
      meetings, notes and written procedures

    Research and statistics

    The Bank of Italy continued to contribute to the Eurosystem’s monetary policy decision-making process and to the drafting of structural and cyclical policy measures, both at European and national level, including through analysis and research. The new scenario arising from the war in Ukraine, sanctions against Russia and soaring energy prices required more in-depth research on monetary policy, the real economy and financial stability.

    The Bank of Italy produces and publishes a wide range of statistics, which are essential for carrying out its institutional functions and for reporting on its own analyses and decisions.

    Indicators

    • Papers published
      215
      publications (of which 14 in the MISP series)
    • Research papers
      600,000
      downloads (including the MISP series)
    • Annual Report for 2021
      39,000
      downloads
    • Sample surveys
      19,000
      questionnaires sent to firms and economic operators
      1,700
      interviews on households’ income and wealth
    • Statistical publications
      670,000
      downloads
    • Statistical database (BDS)
      333,000
      accesses
    • Training for the central banks of emerging countries
      68
      events
      60
      participating countries
      814
      expert speakers
    • Seminars and scientific conferences
      64
      seminars
      26
      scientific conferences

    Services for the State

    In 2022, the Bank of Italy executed about 143 million collection and payment transactions: almost 50 million transactions as state treasurer on behalf of central and local government agencies and over 93 million for other public entities. The sharp increase in the number of transactions compared with 2021 is linked to the payment of the universal child allowance on behalf of INPS, the Italian National Institute for Social Security, since March 2022.

    The Bank has continued monitoring state treasury cash flows on an ongoing basis in order to support the Treasury in its cash flow management and for the purpose of economic analysis. Following the administrative reform of the treasury function that began in 2021, foreclosure management, both against general government and private entities, has been moved from the Bank's branches and centralized in its Treasury Services Directorate. In the summer of 2022, the primary legislation on treasury services on behalf of the State was thoroughly revised by Decree Law 73/2022; the new rules were issued as part of a general plan to update state treasury procedures and IT systems in cooperation with the State Accounting Office and the Court of Auditors, which will be rolled out in 2024. Last year saw an increase in the number of members’ transactions on the Siope+ platform, managed by the Bank. The amount of government securities placed on behalf of the Ministry of Economy and Finance has returned to pre-pandemic levels.

    Indicators

    • Collections and payments on behalf of central government and public entities
      143
      million transactions
    • Siope+
      66
      million transactions
      10,000
      members
    • Placement of Italian government securities
      243
      transactions
      €420
      billion

    Consumer protection, financial education and other services for the community

    The Bank of Italy leverages its regulatory and supervisory tools to protect and inform savers and customers of banks and financial companies. It monitors financial intermediaries for fairness and transparency, offering communication channels, dispute resolution mechanisms and financial education and information services. In 2022, more than 100 intermediaries were supervised for consumer compliance; as a result of these inspections, a total of €95 million were refunded to customers (€35 million in 2021). Public participation in educational initiatives and access to information services (i.e. the Central Credit Register and the Interbank Register of Bad Cheques and Payment Cards) picked up. There was still significant use of some consumer protections (e.g. filing a complaint or appealing to the Banking and Financial Ombudsman - ABF), albeit down on the previous two years, when it had peaked due to the emergence of specific cases that were the subject of dispute or complaint.

    Indicators

    Consumer protection

    • ABF decisions
      17,300
      decisions
      52%
      with an outcome wholly or partially in favour of the customer
      €20
      million awarded to complainants by the Panels
    • Complaints
      12,300
      complaints examined
      37%
      with an outcome wholly or partially in favour of customers
    • Amounts refunded to customers
      €95
      million

    Financial Education

    • Financial Education Month (October 2022)
      288
      events
      19,900
      participants
    • Teaching materials distributed to schools
      56,012
      total copies
      48,257
      for students
    • Work experience projects
      244
      work experience projects
      2,527
      students involved
    • Financial education portal ’Economics for everyone’
      61,782
      average unique visitors per month

    Other services for the community

    • The Central Credit Register
      615,000
      hits
    • Interbank Register of Bad Cheques and Payment Cards
      50,000
      reports sent to applicants
    • Exchange rates portal
      114
      million website pageviews

    Sustainable investments and environmental, cultural and social stewardship

    The Bank integrates environmental, social and governance (ESG) profiles into its investment decisions. ESG criteria are applied to investments in the securities (shares and bonds) of private issuers relating to its financial portfolio and foreign exchange reserves. In 2022, the Bank’s investments in these asset classes showed a lower carbon intensity than their respective benchmarks.

    Its carbon emissions fell by 2 per cent from 2021, mainly as a result of lower heating fuel consumption following the measures introduced by national legislation. Electricity consumption dropped by 2 per cent compared with the previous year.

    The Bank renewed its efforts to provide expert advice to the Italian Parliament, share the results of its research, enhance its artistic, bibliographic and archival heritage, train young people and promote culture. In 2022, the Bank of Italy funded numerous socially responsible initiatives.

    Indicators

    Environment

    • Carbon intensity of equity investments
      -32%
      for euro-area equity investments
      -48%
      for US and Japanese equity investments in units of collective investment undertakings
    • Greenhouse gas emissions
      -2%
      total emissions on 2021
      -22%
      total emissions on 2019
    • Electricity consumption
      -2%
      on 2021

    Culture and society

    • Research initiatives funded
      24
      research projects and fellowships
    • Internships
      185
      internships
    • Contributions to the economic debate and parliamentary hearings
      112
      speeches by members of the Governing Board and other representatives
      16
      parliamentary hearings
      3
      written reports
    • Contributions to socially responsible initiatives
      €7.6
      million
      202
      initiatives