IDEAS home Printed from https://ideas.repec.org/p/imf/imfscr/2026-242.html

Italy: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis and Stress Testing

Author

Listed:
  • International Monetary Fund

Abstract

This paper presents a comprehensive assessment of systemic risks and the resilience of Italy’s banking sector under the Financial Sector Assessment Program. The analysis evaluates key vulnerabilities, sectoral exposures, and risks affecting corporates and households, alongside detailed assessments of banks’ solvency and liquidity through comprehensive stress testing. It also examines cross-sectoral and cross-border interconnectedness, large exposures, and common exposures that could generate contagion. Italy’s financial system remains broadly sound and resilient despite challenging macrofinancial and geopolitical conditions. However, persistent structural vulnerabilities continue to constrain medium- to long-term growth and financial stability. Liquidity assessments indicate that Italian banks maintain adequate and generally comfortable liquidity buffers, while stress tests demonstrate resilience to significant liquidity outflows. The analysis recommends that Banca d’Italia continue incorporating emerging risks and heightened macroeconomic volatility into stress-testing frameworks. Further development of system-wide stress testing, supported by granular data on common sovereign exposures, can strengthen macroprudential surveillance and enhance timely financial stability assessments.

Suggested Citation

  • International Monetary Fund, 2026. "Italy: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis and Stress Testing," IMF Staff Country Reports 2026/242, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2026/242
    as

    Download full text from publisher

    File URL: https://www.imf.org/en/publications/longres?sk=579306
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfscr:2026/242. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.