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Financial System - Italy

In: Business and Management

Submitted By latingirldr
Words 5118
Pages 21
The Financial and Banking system of:

Italy
Presented
In Partial Fulfillments of the
Course Requirements for FIN 4634
International Banking
Presented for: Marcos A. Kerbel
Participating Adjunct Professor
Department of Finance & Real Estate
Florida International University
Miami, Florida
Prepared by:
Lisandra Cabrera
Panther ID: 3553624
Phone: 786-518-8234
Email: lcabr025@fiu.edu
Reported dated: 7/21/2012

Table of Contents
I. Geography ................................................................................................................................. 4
II. History of the Country............................................................................................................... 5
III. Country’s Financial System..................................................................................................... 6
a. History Overview ………………………………….................................................... 6
b. Present Monetary Laws and Regulations…………………………………………….. 7
c. Types of Financial Institutions operating in the country............................................... 8
d. The Central Bank ...………………………................................................................... 8
e. Bank Regulation............................................................................................................. 8
f. Commercial Banks Operating in the country ................................................................ 9
IV. Country’s Balance of payment, Exports, imports, etc. .......................................................... 10
V. Foreign Reserves ………………………………………......................................................... 12
VI. Current Situation of the country’s currency …...................................................................... 12
VII. Risk Banks ………................................................................................................................ 13
VII. Country’s preventions about Money Laundering ………………….……………………… 14
IX. Important Bank Failures and Scandals in the Country …………………………………….. 16
X. Summary and Conclusion …………………………………………………………………... 17
XI. Future Outlook of the Country and its Financial System ………………………………….. 19
XII. Approve Lines of Credit for Banks in this Country ………………………………………. 20
XIII. Appendices ……………………………………………………………………………….. 21
XIV. Footnotes and Bibliography Requirements ………………………………………………. 23

Map 1 …………………………………………………………………………………… 4
Chart 1 ………………………………………………….………………………………. 10
Chart 2 ………………………………………………………………………………….. 11
Chart 3 ………………………………………………………………………………….. 12
Chart 4 ………………………………………………………………………………….. 13 Table 1 …………………………………………………………………………………. 14 Table 2 …………………………………………………………………………………. 21

I. Italia Geography | | | Geography | Italy | Location: | Southern Europe, a peninsula extending into the central Mediterranean Sea, northeast of Tunisia. | Geographic coordinates: | 42 50 N, 12 50 E | Area: | total: 301,230 sq km land: 294,020 sq km water: 7,210 sq km note: includes Sardinia and Sicily | Coastline: | 7,600 km | Climate: | Predominantly Mediterranean; Alpine in far north; hot, dry in south. | Terrain: | Mostly rugged and mountainous; some plains, coastal lowlands. | Natural resources: | Coal, mercury, zinc, potash, marble, barite, asbestos, pumice, fluorspar, feldspar, pyrite (sulfur), natural gas and crude oil reserves, fish, arable land. | Natural hazards: | Regional risks include landslides, mudflows, avalanches, earthquakes, volcanic eruptions, flooding; land subsidence in Venice. (|2|) | II. People and History

Italy is largely homogeneous linguistically and religiously but is varied culturally, economically, and politically. Italy has the fifth-highest population density in Europe--about 200 persons per square kilometer (about 500 per sq. mi.). The minority groups are small, the largest being the German-speaking people of Bolzano Province and the Slovenes around Trieste. Italy also has small populations of Albanian, Greek, Ladino, and French origin. Immigration has improved in recent years; however, the Italian population is decreasing overall due to low birth rates. Although Roman Catholicism is the majority religion--85% of native-born citizens are nominally Catholic--the constitution offers the freedom of religion. The community that settled in the southern tip of the Italian Peninsula in the eighth and seventh centuries B.C was the Greeks. Etruscans, Romans, and others settled the central and northern mainland. The peninsula was successively unified under the Roman Republic. The bordering islands came under Roman control by the third century B.C.; by the first century A.D., the Roman Empire effectively conquered the Mediterranean world. After the downfall of the Roman Empire in the West in the fifth century A.D., the peninsula and islands were exposed to a series of invasions and lost political unity. Italy became an oft-changing succession of small states, principalities, and kingdoms, which fought among themselves and were subject to ambitions of foreign powers. The central Italy was ruled by the popes of Rome; rivalries between the popes and the Holy Roman Emperors, who claimed Italy as their territory, often made the peninsula a battlefield. Beginning in the 11th century, the commercial prosperity of northern and central Italian cities, combined with the influence of the Renaissance, somewhat diminished the effects of these medieval political jealousies. Although Italy decayed after the 16th century, the
Renaissance had reinforced the idea of a single Italian nationality. By the early 19th century, a nationalist movement established and led to the reintegration of Italy--except for Rome--in the 1860s. In 1861, Victor Emmanuel II of the House of Savoy was declared King of Italy. Rome was integrated in 1870. From 1870 until 1922, Italy was a constitutional monarchy with a assembly elected under limited suffrage.

III. Country’s Financial System a. Historical Overview
The roots of banking are lost in the mists of time, but not those of central banks. For each one, the date of birth is known with exactitude: 1668 for the central bank of Sweden, 1694 for that of England, 1800 for France, 1814 for the Netherlands, 1817 for Austria, 1850 for Belgium, 1875 for Germany, 1882 for Japan, 1893 for Italy, 1913 for the Federal Reserve Bank of the United States. This apparently exact list of date’s risks being misleading, however. In fact, the central bank did not ascend as the whole, complete institution we know today. The central bank is a body that has advanced over time, progressively attaining new and increasingly multifaceted functions, duties and features, establishing more and more complex and delicate relations with the rest of the banking and financial system and with the political system and the economy in general.”
The Bank of Italy was founded in 1893 as part of an overall reformation of Italy’s banks of issue. In 1926 the essentially public position of the Bank was afforded significant recognition, as it became the sole institution authorized to issue banknotes (dollar bill). It was given powers of banking supervision that would be expanded and fortified by the 1936 Banking Law, which also formally recognized the Bank’s status as a public law institution. This remained the fundamental legislation on Italian banking until 1993, when the Consolidated Law on Banking, still in effect, was legislated. A crucial passage in the history of the Bank was the stabilization of the lira in 1947. The postwar surge of inflation was broken and the monetary conditions for the “economic miracle” of the 1950s were established. The Constitution of 1948 treasured the principle of the “protection of savings.” Following the shockwaves of the 1970s to the international monetary system and the lira, Italian disinflation was supported by stronger legal safeguards for the central bank’s independence. The reinstatement of the stability of the currency and the start made on the modification of the public finances enabled Italy to fulfill with the standards set by the Agreement of Maastricht (1992) and qualify for the lead group of countries adopting the euro as their currency in 1999. Euro banknotes and coins went into circulation in 2002. b. Present Monetary Laws and Regulations
The Bank contributes to monetary policy decisions through the participation of the Governor in the Governing Council of the European Central Bank and of its experts in the Euro-system committees and working groups that complete the necessary technical analysis.
It accomplishes these functions under Article 105 of the EC Treaty and Article 3 of the Statute of the European System of Central Banks.

c. Types of Financial Institutions operating in the country
Larger Banks: Unicredit - Capitalia, Intesa Sanpaolo, Mediobanca, Ubi Banca, Banco Popolare, Banca Monte Paschi Siena, Banca Carifirenze, Banca Pop. Milano, Banca Carige, Credito Emiliano.
Major Banks: Banca Nazionale del Lavoro
Local Banks: Banco Desio, Banco di Sardegna, Banca Popolare di Sondrio, Banca Generali, Credito Bergamasco, Credito Valtellinese, Südtiroler Volksbank.

d. The Central Bank
The Bank of Italy is the central bank of the Republic of Italy and part of the European System of Central Banks (ESCB) and the Eurosystem. It is a public-law institution and pursues aims of general interest in monetary and financial matters: price stability, the primary objective of the Eurosystem under the Treaty establishing the European Community (the EC Treaty); the stability and efficiency of the financial system, thus implementing the principle of the protection of savings embodied in the Constitution (Article 47(1) “The Republic encourages and protects saving in all its forms, it regulates, coordinates and controls the provision of credit”); and the other duties entrusted to it by Italian law.
In performing its tasks the Bank operates autonomously and independently, in compliance with the principle of transparency and the applicable provisions of Community and Italian law.
Consistently with the public nature of its functions and aware of the importance of its tasks and responsibilities, the Bank prepares information and data for maximum dissemination.

e. Bank Regulation * Law n. 196 of December 31st 2009 (law of accounting and public finance), art. 47 (Amendments to the rules regulating the Treasury accounts for liquidity management), published on the ordinary supplement of Italian Republic Official Gazette n. 245/L as of December 31st 2009. * "Agreement for the management of the Treasury account for treasury purposes at the Bank of Italy and other equivalents", stipulated between Bank of Italy and the Ministry of the Economy and Finance on March 22nd 2011. * the decree of the Italian Ministry of the Economy and Finance as of October 25th 2011 governing "financial transactions to bear on the Treasury availability account for treasury purposes and other equivalents and for the selection of eligible counterparties taking part in the respective operations", published on the Italian Republic Official Gazette n. 254 as of October 31st 2011. * the decree of the Italian Ministry of the Economy and Finance as of November 28th 2011 spelling out the "directives for financial transactions borne by the Treasury's availability account for treasury purposes and other equivalents", published on the Italian Republic Official Gazette n. 279 as of November 30th 2011. * "Agreement between the Bank of Italy and counterparties eligible to participate in operations on behalf of the Treasury"

f. Commercial Banks Operating in the country
No data was encounter during the writing of this research paper for Commercial banks operating in Italy. IV. Country’s Balance of payment, Exports, imports, etc.
Italy exports were worth 35.1 Billion EUR in May of 2012. Historically, from 2002 until 2012, Italy Exports averaged 26725.5300 Million EUR reaching an all time high of 37346.0000 Million EUR in July of 2008 and a record low of 15260.0000 Million EUR in August of 2003. Italy's major exports are accuracy equipment, motor vehicles (utilitaries, luxury vehicles, motorcycles, and scooters), chemicals and electric goods, but the country's more famous exports are in the fields of food and clothing. Italy's closest trade ties are with the other countries of the European Union, with whom it conducts about 59% of its total exports. Italy's largest EU trade partners are Germany and France. This page includes a chart with historical data for Italy Exports.

Italy imports were worth 34.1 Billion EUR in May of 2012. Historically, from 2002 until 2012, Italy Imports averaged 27645.5500 Million EUR reaching an all-time high of 38203.0000 Million EUR in March of 2011 and a record low of 13899.0000 Million EUR in August of 2003. Italy’s major imports are: engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; automobiles, electronics, food, beverages and tobacco. Italy’s main import partners are European Union countries (Germany, France, Netherlands, Belgium, Spain), China and United States. This page includes a chart with historical data for Italy Imports.

Italy reported a trade surplus equivalent to 1008 Million EUR in May of 2012. Historically, from 2002 until 2012, Italy Balance of Trade averaged -920.0300 Million EUR, reaching an all-time high of 3457.0000 Million EUR in July of 2009, and a record low of -6309.0000 Million EUR in January of 2011.
Italy's major exports are food, clothing, precision machinery, motor vehicles, chemicals and electric goods. Italy imports mainly engineering products, transport equipment, chemicals, energy products, minerals, textiles and clothing, automobiles, electronics, food, beverages and tobacco. Italy's closest trade ties are with the other countries of the European Union, with whom it conducts about 59% of its total trade. Italy's largest EU trade partners are Germany and France.

V. Foreign Reserves
The Banca D'Italia manages Italy's foreign reserves, which have been reported at 2,702.6 tons by the World Gold Council and embrace the fourth largest gold reserve in the world.
These holdings are worth $126.12 billion in the open market and account for 73.4 percent of the country's foreign reserves. (|7|) VI. Current Situation of the country’s currency
€-coin falls in July * The €-coin index fell to -0.24% in July from -0.17% in June, ratifying the current cyclical weakness of the euro-area economy. * The deterioration was due mainly to the negative results of surveys of businesses and households. * The €-coin indicator established by the Bank of Italy offers a summary index of the current economic situation in the euro area. The indicator is an approximation of quarterly GDP growth shorn of the most unreliable components (seasonal variations, measurement errors and short-run volatility). €-coin is published monthly by the Bank of Italy and CEPR. * Next €-coin release dates: Friday 31 August and Friday 28 September (provisional).

€-coin gathers data from a large set of macroeconomic time series (industrial production indices, business surveys, demand indicators, stock market indices and more). It removes the information that is significant to tracking underlying GDP trends for the entire area.
The €-coin estimate is timely, leading Eurostat’s official release of the area-wide GDP growth figure by several months. And it offers a reasonably close expectation of the quarterly growth rate net of the more unstable components. The estimate of primary growth trends by €-coin has two key advantages:
(i) Monthly frequency, with release several months ahead of the official euro-area
GDP estimate;
(ii) Immunity to the short-term fluctuations and measurement errors that mark quarterly output growth; that is, the index figure is an indicator of the euro area’s actual growth momentum.
The following table shows the performance of the €-coin indicator over the last year: MONTH | €-COIN | July-11 | 0.45 | August-11 | 0.22 | September-11 | 0.03 | October-11 | -0.13 | November-11 | -0.20 | December-11 | -0.20 | January-12 | -0.14 | February-12 | -0.06 | March-12 | -0.03 | April-12 | -0.08 | May-12 | -0.03 | June-12 | -0.17 | July-12 | -0.24 |

VII. Risk Banks that face- such Currency, Political, Regulatory, Crime, etc.
Italy’s financial institutions take on a high risk of disappointment and bankruptcy due to the debt, the productivity shortfall, widespread corruption, or the slow South of Italy. Based on the article “4 Reasons Why Italy's Economy Is Such a Disaster” by Jordan Wiessmann in The Atlantic newspaper, Italy’s financial system is slowly being pushed to the edge. He mentions “Like Venice in the lagoon, Italy's economy has been slowly descending for a long time.” This similarity is a brief description of the known risks that the Italian banks are facing. One of the largest apprehensions is the Italian mafia who continues to stimulate corruption in politics, fraud, and money laundering. These factors all yield back to the financial institutions that in turn open and manage accounts based on falsified data.
Politics ultimately make the final decisions as to where the country is headed. Every decision is for the good of that nation, but when you have a country like Italy where the political government has great impact from the Italian mafia, you are looking at a country constantly making the wrong decisions for the growth of corruption and counterfeit. Perhaps that is why Jordan Wiessmann touched upon the decaying economy of Italy; the banks will always remain in risk in Italy because they are funding a country who will eventually lead to revolution if the exponential corruption and productivity shortage is not controlled.

VIII. Country’s preventions about Money Laundering
Money laundering is the activity by means of which the proceeds of criminal activity are reinstated into the legal economy, with a view to dissimulating or hiding their illegal origin. Money laundering destabilizes the legal economy because it affects the normal competitive conditions of markets and is a threat to the efficiency and stability of the financial system.
The prevention of money laundering plays a strategic role in fighting crime and is based on the following responsibilities: * customer due diligence. * record-keeping requirements concerning business relationships and occasional transactions. * adoption of adequate organizational procedures and internal control measures. * suspicious-transaction reporting.
An additional anti money-laundering tool consists of the provisions to restrict the use of cash and bearer instruments. The anti-money-laundering - AML legislation involves financial intermediaries and non financial businesses and professions - such as antique dealers, gaming houses, lawyers, accountants, real estate agents, etc. - to collaborate with the UIF.
Anti-money-laundering provisions are included in both international and European laws as well as in domestic primary and secondary sources.
A fundamental contribution to legislative harmonization was provided by the Financial Action Task Force (FATF), which is the highest international body entrusted with the countering of money laundering and terrorist financing. The FATF has drawn up internationally known standards, which are not legally binding but perform moral suasion, the 40 Recommendations, subsequently supplemented by the 9 Special Recommendations on countering international terrorist financing.

IX. Important Bank Failures and Scandals in the Country
According to “4 Reasons Why Italy's Economy Is Such a Disaster” by Jordan Wiessmann, the combined debt of the financial institutions of Italy is much larger than its revenue. This is a key failure in the monetary system and will cause financially unstable companies to throttle and perhaps have to make rash, unethical decisions in order to continue afloat. Decisions such as accepting dirty money from the Italian mafia, was digging deeper into debt for example. These backup plans are not the safest way to go, because owing a debt to dirty money is no easy payback.
The Atlantic mentions the following statistics on earlier times when the financial system of Italy was stable,
“Italy's debt ratio is the second worst in the euro zone, behind only Greece. The country's national debt weighs in at roughly 120% the size of its gross domestic product, or about $2.6 trillion. But that dizzying figure alone isn't what's causing panic in the marketplace. In fact, there was a time in recent memory when the market wouldn't have thought much of it at all. Italy has shouldered debt-to-GDP ratios well above 100% for about 20 years now, thanks largely to a government spending binge way back in the 1980s. In 1999, when Italy officially adopted the euro, its debt-to-GDP ratio was 126%. So what changed? In a word: growth. Back in the go-go 1990s, Italy's government actually learned to budget carefully and enjoyed slow but consistent GDP growth. Low deficits kept the size of the debt stable, and an expanding economy, aided by moderate inflation, made it possible to finance interest payments on what the government already owed. Thus, the country's economy stayed afloat.” -Jordan Wiessmann
In modern Italy the level of corruption, fraud, and counterfeit information is at its highest, and experts can only see it increase within the next years. This general instability can cause many scandals to emerge. Many of which would link back to its source...corruption. (|1|)

X. Summary and Conclusion
Below are the highlights of each section in this research paper: * Italy’s geography * Italy has represented an important part in Europe since the early Roman Empire. * Location: Southern Europe, a peninsula extending into the central Mediterranean Sea, northeast of Tunisia. * Capital: Rome * Major cities and population: Rome, Milan, Naples, Genoa, Venice

* Italy’s Financial System * The central bank is the one that contributes to monetary policy, laws and regulations decisions with the Governor and the experts in the Euro-system committees to complete the financial analysis. * The different types of financial institutions operating in Italy are categorized by larger banks, major banks, and local banks. * The central Bank of Italy pursues aims of general interest in monetary and financial matters like price stability.

* Foreign Trade and Reserves: * The value of exports of goods worth 35.1 Billion EUR and imports worth 34.1 Billion EUR in May 2012. * Italy stated a trade surplus equivalent to 1008 Million EUR in May of 2012. * Italy embraces the fourth largest gold reserve in the world by 2,702.6 tons.

* Currency Situation: * The €-coin index fell to -0.24% in July from -0.17% in June. The deterioration was due mainly to the negative results of surveys of businesses and households. * Italy’s financial institutions take on a high risk of disappointment and bankruptcy due to the debt. * Preventing Money Laundering: * The central Bank of Italy is fighting money laundering by record-keeping requirements concerning business relationships and occasional transactions. * suspicious-transaction reporting.
My initial thoughts of this country’s financial system were incorrect because I thought Italy wasn’t that bad economically. The financial institutions in Italy are on a high risk of bankruptcy due to t debt, the productivity shortfall, widespread corruption, or the slow South of Italy.

XI. Future Outlook of the Country and its Financial System
Italy's economic outlook is an optimistic one, particularly as the level of education is rising, and population growth is controllable. All indicators point to continued enhancing in living standards. The future will see the Italian economy incorporated even more into the economy of its European partners, and the European Union will eventually become a fully united body in all economic matters, including taxation.
There are, however, still a number of undesirable aspects that plague the economic and social well-being of Italy. First and foremost, is the gap between the north and the south, which has extended over the past couple of decades, with government policies and EU grants proving unable to bring about any substantial improvement. Closing this gap is Italy's major challenge in securing a healthy future.
The Bank of Italy attempts to strengthen its multifaceted action to improve monetary and financial stability: through the formulation and implementation of the euro-area’s monetary policy; the note issue; the regulation and observation of financial intermediaries, markets and the payment system; and the analysis of the Italian and world economies to notify other Italian institutions and public opinion and to contribute to economic debate. The Bank attempts to pursue excellence, while reducing costs, response times and risks, and to reward skills and merit. It will edify on its independence.

XII. Would you Approve Lines of Credit for Banks in this Country
No, the ratings for Italian banks are now between the lowest within advanced European countries, reflecting these banks' susceptibility to the adversative operating environments in Italy and Europe. Today's rating actions reflect, to differing degrees for each influenced bank, the following key drivers:
1.) Increasingly adverse operating conditions, with Italy's economy back in recession and government austerity reducing near-term economic demand;
2.) Mounting asset-quality challenges and weakened net profits, as problematic loans and loan-loss provisions are rising; and
3.) Restricted access to market funding which, if persistent, will perform added pressure on banks to reduce assets, posing risks to their franchises and earnings.

XIII. Appendix

Cost of Living in Italy
Cost of living in Italy for the 2011-2012 year interval can be best represented via the following charts. (|14|) Restaurants | Average Consumer price | Range: [Low, High] | Meal, Inexpensive Restaurant | $16.88 | [$12.24, $24.49] | Meal for 2, Mid-range Restaurant, Three-course | $61.54 | [$42.86, $85.71] | Combo Meal at McDonalds or Similar | $8.48 | [$12.24, $24.49] | Domestic Beer (0.5 liter draught) | $4.88 | [$3.06, $6.12] | Imported Beer (0.33 liter bottle) | $4.48 | [$3.67, $6.12] | Cappuccino (regular) | $1.60 | [$1.22, $2.2] | Coke/Pepsi (0.33 liter bottle) | $2.43 | [$1.84, $3.67] | Water (0.33 liter bottle) | $1.34 | [$0.86, $1.84] | Markets | | | Milk (regular), 1 liter | $1.54 | [$1.22, $1.9] | Loaf of Fresh White Bread (500g) | $1.86 | [$1.22, $2.45] | Eggs (12) | $3.11 | [$1.84, $4.9] | Fresh Cheese (1kg) | $12.86 | [$9.8, $18.37] | Chicken Breasts (Boneless, Skinless), (1kg) | $8.78 | [$6.12, $11.02] | Apples (1kg) | $1.96 | [$1.22, $2.45] | Oranges (1kg) | $1.90 | [$1.22, $2.45] | Potato (1kg) | $1.29 | [$0.86, $2.08] | Lettuce (1 head) | $1.17 | [$0.73, $1.84] | Water (1.5 liter bottle) | $0.53 | [$0.37, $0.98] | Bottle of Wine (Mid-Range) | $5.93 | [$3.67, $8.57] | Domestic Beer (0.5 liter bottle) | $1.55 | [$1.1, $2.45] | Imported Beer (0.33 liter bottle) | $1.98 | [$1.22, $3.06] | Pack of Cigarettes (Marlboro) | $5.97 | [$5.51, $6.37] | Transportation | | | One-way Ticket (local transport) | $1.58 | [$1.22, $1.84] | Monthly Pass (Regular Price) | $39.62 | [$34.16, $48.98] | Taxi Start (Normal Tariff) | $4.80 | [$3.43, $7.35] | Taxi 1km (Normal Tariff) | $1.32 | [$1.1, $1.86] | Taxi 1hour Waiting (Normal Tariff) | $31.51 | [$25.71, $37.24] | Gasoline (1 liter) | $2.07 | [$1.84, $2.23] | Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car) | $23,870.73 | [$18979.75, $28163.5] | Utilities (Monthly) | | | Basic (Electricity, Gas, Water, Garbage) for 85m2 Apartment | $174.92 | [$97.96, $244.9] | 1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) | $0.19 | [$0.12, $0.24] | Internet (6 Mbps, Unlimited Data, Cable/ADSL) | $31.56 | [$24.49, $42.86] | Sports And Leisure | | | Fitness Club, Monthly Fee for 1 Adult | $65.94 | [$48.98, $86.74] | Tennis Court Rent (1 Hour on Weekend) | $18.27 | [$12.24, $24.49] | Cinema, International Release, 1 Seat | $9.38 | [$8.57, $11.02] | Clothing And Shoes | | | 1 Pair of Levis 501 (Or Equivalent) | $109.31 | [$79.59, $146.94] | 1 Summer Dress in a Chain Store (Zara, H&M, ...) | $47.51 | [$24.49, $79.59] | 1 Pair of Nike Shoes | $108.86 | [$73.47, $146.94] | 1 Pair of Men Leather Shoes | $133.53 | [$97.96, $183.67] | Rent Per Month | | | Apartment (1 bedroom) in City Centre | $758.15 | [$489.8, $1224.5] | Apartment (1 bedroom) Outside of Centre | $569.13 | [$367.35, $857.15] | Apartment (3 bedrooms) in City Centre | $1,413.08 | [$795.92, $2449] | Apartment (3 bedrooms) Outside of Centre | $1,010.56 | [$612.25, $1469.4] | Buy Apartment Price | | | Price per Square Meter to Buy Apartment in City Centre | $5,313.76 | [$3061.25, $8571.5] | Price per Square Meter to Buy Apartment Outside of Centre | $3,210.21 | [$2142.88, $4898] | Salaries And Financing | | | Median Monthly Disposable Salary (After Tax) | $1,666.79 | [$1224.5, $2265.32] | Mortgage Interest Rate in Percentages (%), Yearly | $$4.97 | [$3.6, $6] |

XIV. Footnotes and Bibliography

|1| "4 Reasons Why Italy's Economy Is Such a Disaster." The Atlantic. N.p., August 3, 2012.Web. 29 July 2012. <http://www.theatlantic.com/business/archive/2011/11/4-reasons-why-italys-economy-is-such-a-disaster/248238/>.
|2| "Background Note: Italy." U.S. Department of State. U.S. Department of State, August 3, 2012 . Web. 29 July 2012. <http://www.state.gov/r/pa/ei/bgn/4033.htm>.
|3| "Banking In Italy." Banking In Italy. N.p., August 3, 2012 . Web. 05 Aug. 2012. <http://www.propertyshowrooms.com/italy/guide/banking-in-italy.asp>.
|4| "Commercial Bank of Italy." TheFreeDictionary.com. N.p., August 3, 2012 . Web. 29 July 2012. <http://encyclopedia2.thefreedictionary.com/Commercial Bank of Italy>.
|5| "Commercial Banks Guide." Commercial Banks Guide. N.p., August 3, 2012 . Web. 29 July 2012. <http://www.commercialbanksguide.com/>.
|6| "Encyclopedia of the Nations." Italy Future Trends, Information about Future Trends in Italy. N.p., August 3, 2012 . Web. 29 July 2012. <http://www.nationsencyclopedia.com/economies/Europe/Italy-FUTURE-TRENDS.html>.
|7| "Indicators for ITALY." Indicators for ITALY. N.p., August 3, 2012 . Web. 29 July 2012. <http://www.tradingeconomics.com/italy/indicators>.
|8| "Indicators for ITALY." Indicators for ITALY. N.p., August 3, 2012 . Web. 31 July 2012. <http://www.tradingeconomics.com/italy/indicators>.
|9| "Moody's Downgrades Italian Banks; Outlooks Remain Negative." Moody's Downgrades Italian Banks; Outlooks Remain Negative. N.p., August 3, 2012 . Web. 31 July 2012.
<http://www.moodys.com/research/Moodys-downgrades-Italian-banks-outlooks-remain-negative--PR_244732>.
|10| "The Economist Intelligence Unit." Fact Sheet. N.p., August 3, 2012 . Web. 05 Aug. 2012. <http://country.eiu.com/article.aspx?articleid=329312617>.
|11| "The World's Biggest Gold Reserves." CNBC.com. N.p., August 3, 2012 . Web. 29 July 2012. <http://www.cnbc.com/id/33242464/The_World_s_Biggest_Gold_Reserves>.
|12| "WikiWealth." Italy (EUR, Euro) Economic & Currency Analysis -. N.p., August 3, 2012 . Web. 29 July 2012. <http://www.wikiwealth.com/country:italy>.
|13| "Who Owns Most of the World's Gold?" Who Owns Most of the World's Gold? N.p., August 3, 2012 . Web. 29 July 2012. <http://www.wealthdaily.com/articles/who-owns-worlds-gold/2491>.
|14| "Yesterday: Cost of Living in Italy." . Prices in Italy. N.p., n.d. Web. 05 Aug. 2012. <http://www.numbeo.com/cost-of-living/country_result.jsp?country=Italy>.

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[ 1 ]. Countries in the Mediterranean have been subdividing overtime to the extent that Europe is made up of more countries than in once started with. Italy once belonged to the Roman Empire, but in 2011, there is government, citizens and military, all of which show the progression of the country.
[ 2 ]. Victor Emmanuel II: 1820–1878 king of Sardinia-Piedmont (1849–61) & 1st king of Italy (1861–78).
[ 3 ]. Agreement of Maastricht (1992): The Treaty of the European Union (TEU), also known as Treaty of Maastricht for having been signed in that Dutch town, constitutes a turning point in the European integration process. By modifying the previous treaties -Paris, Rome and Single European Act-, the initial economic objective of the Community, building a common market, was outstripped and, for the first time, a distinctive vocation of political union was claimed.
[ 4 ]. NonFerrous Metals are elements that do not contain iron.
[ 5 ]. The euro currency is the common basic monetary unit of most countries of the European Union.
[ 6 ]. The Atlantic is a widely respected and credible source in the European press. The Atlantic has been known to swiftly distribute contemporary issues and concerns to its public.
[ 7 ]. Venice is a city in Italy that was built on waterways and due to persistent rainfall and water distribution of other countries; it is slowly sinking below the normal water level.
[ 8 ]. Please note that the numbers have been translated to USD from Euro based on the currency conversion factor for the year 2012.
[ 9 ]. Please note that the |N| notation is used to cite these sources in there appropriate location throughout the research paper. (where N is an Integer greater than 1).

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Universal Banking

...Universal banking is the norm in lower- and middle-income countries. Ever- expanding safety nets also seem to be the norm in the 20th century in these same countries. Is there a connection between the two? Should the structure of the financial system influence the depth or breadth of the financial safety net adopted by governments? Why or why not? The role and the future of safety nets as an inherent feature of the majority of financial systems today have been debated widely following the recent financial and economic meltdown. In order to develop adequate reforms for the global financial system, it is important to understand the role of safety nets in both developed and developing economies and its interconnection with the financial institutions. This paper will investigate two major issues. First, it will analyze interconnection of safety nets and universal banks in the lower- and middle-income countries (LMIC). Second, it will look into interdependence of the safety nets’ features and the types of the financial systems. It will argue that safety nets’ breadth and depth should be influenced by the structure of the financial system. Universal banks and safety nets in lower- and middle-income countries The 20th century witnessed universal banks and safety nets spreading across the LMICs. The explanation of this phenomenon is complex as universal banks and safety nets developed independently, but definitely influenced and reinforced each other in the LMIC markets. ...

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Risk Disclosure

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Contemporary Business Issues

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The Economic G20

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