(Finance) – The Bank of Italybased on data as of December 31, 2022, identified as relevant third countries this year for the Italian banking system the RussiaThe United Statesthe Swiss and the United Kingdom. These countries are also identified as relevant for the entire European Economic Area and are therefore subject to surveillance by the European Systemic Risk Board (ESRB) for risks deriving from excessive credit growth.
The identification of the four countries was carried out following the criteria set out in decision ESRB/2015/3. The assessment concerned all the countries to which Italian banks have exposures and took into consideration three indicators, referring to exhibition shares original (i.e. non-risk-weighted exposures), of risk-weighted exposures and some default exposures towards each country on the total of the corresponding exposures of the Italian banking system.
They were identified as relevant those countries for which at least one of the three indicators was equal to or greater than 1% in each of the previous two and in the average of the previous eight quarters.
With reference to RussiaBankitalia points out that since the invasion of Ukraine “sconstantly follows the evolution of risks for financial stability (also other than those connected with excessive credit growth in third countries) deriving from the exposures of Italian intermediaries towards the countries involved in the conflict”.