Bank of Italy view on bank mergers no longer binding in govt regulatory review |
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Fri, 02 Feb 2007 15:10
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MILAN (AFX) - The Bank of Italy's opinion on banking mergers will no longer be binding, the undersecretary at the prime minister's office Enrico Letta said, presenting the government's draft law for the reorganization of Italy's regulatory authorities.'The opinion of the Bank of Italy however carries weight even if it is not binding,' Letta said.In a previous reform of the financial system, the government had already reduced the supervisory powers of the central bank, which were shared with the antitrust authority.The government's new legislative package presented today is designed to strengthen the independence of the regulators and reorganize the sector more rationally, Letta said.With the review, the energy regulator will be attributed powers to supervise the water sector and set water tariffs.Letta added that the government 'is committed to keeping water services in public hands.'Meanwhile, the communications regulator's brief was extended to include postal services, along with existing powers over telecoms and television.A new regulator is to be set up for transport and infrastructure.Referring to motorways, Letta said decisions on concessionary issues, including investments and tariffs, will remain with the Infrastructure Ministry and not be transferred to the new transport regulator.In the financial sector the government has abolished the insurance regulator ISVAP and the pension fund regulator COVIP, whose powers will be attributed to the Bank of Italy and the market regulator Consob.The government committee CICR which will be replaced by the 'Committee for financial stability' which will comprise the Economy minister, the Governor of the Bank of Italy and the chairman of market watchdog Consob.Market transparency issues will remain with Consob and competition issues with the Antitrust authority.The regulators, except for the Bank of Italy, will be made up of five members appointed for seven years. It will be impossible for the members to be reappointed, even to another regulator.stephen.jewkes@thomson.comdm/icCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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