BDI

Banca d'Italia: Expert Assessment in Credit Rating System

The Bank of Italy has published an analysis (N. 79) detailing recent methodological improvements to its internal credit rating system for non-financial companies (ICAS). The study, based on over 25,000 expert assessments from 2016-2022, highlights how expert judgment, including climate and sector risk analysis, significantly enhances rating predictive power and stability during economic stress.

Generative AI for Bank Carbon Data Gaps

Banca d'Italia published a paper exploring the use of Generative AI (GenAI) to address gaps and inconsistencies in carbon emission data reported by major Euro area banks. The research assesses GenAI's ability to supplement traditional data sources, noting its potential while also highlighting quality and transparency concerns.

Italian Less Significant Banks' Corporate Lending Deterioration Analysis

Banca d'Italia published an analysis on corporate lending by Italian less significant banks (LSI) compared to significant groups (SI). The study found that LSIs have a higher loan deterioration rate, largely due to a greater proportion of loans to smaller, higher-risk businesses.

AI Adoption Impact on Italian Firms' Productivity and Profitability

Banca d'Italia published a paper analyzing the economic impact of AI adoption on Italian firms. The study found that AI adoption increases productivity and profitability, leading to a reallocation towards more qualified roles without negative overall employment effects.

AI and US Economy: Accounting Perspective on Investment and Production

The Bank of Italy has published a paper analyzing the impact of Artificial Intelligence (AI) infrastructure investments on the US economy. The paper details how AI investments, particularly in data centers, have supported aggregate demand in the US and discusses the global supply chain for AI components.

Italy Reciprocates Austrian Macroprudential Measure

The Bank of Italy has decided to reciprocate Austria's macroprudential measure, a 1% sectoral systemic risk buffer on exposures to construction and real estate sectors. This measure, effective April 1, 2026, applies to Italian banks and banking groups, with an exemption for institutions with exposures below €100 million.

Eurocoin Indicator Shows Slight Fall in January

Banca d'Italia announced that the Eurocoin indicator, a measure of euro area economic activity, slightly decreased to 0.49 in January 2026 from 0.52 in December 2025. This indicates a continued, albeit softened, phase of cyclical expansion within the euro area.

ECB Banking Data: Assets and Non-Performing Loans Ratio Increase

The European Central Bank (ECB) has published consolidated banking data for the end of September 2025. The data shows a 0.95% increase in total assets to €33.44 trillion and a 0.01 percentage point increase in the non-performing loans ratio to 1.97%.

Banca d'Italia Identifies O-SIIs and Sets Capital Buffer Requirements

Banca d'Italia has identified additional Other Systemically Important Institutions (O-SIIs) and set new capital buffer requirements. BPER Banca and Monte dei Paschi di Siena will be subject to a 0.50% buffer starting April 1, 2026, in addition to previously identified institutions.

Eurocoin Indicator Increased to 0.54 in February

The Bank of Italy announced that the Eurocoin indicator, a summary index of the euro area's current economic situation, slightly increased to 0.54 in February 2026 from 0.49 in January. The indicator is boosted by manufacturing confidence and demand indicators.