Our bank is one of the most affected by the Russian economic system. What are the risks to Italians’ bank accounts as the war continues? What should the customers of the Italian banks most affected by the Russian financial system fear?
In the past few days, many will be shocked to hear from the media that the stock market has collapsed. On Friday 4 March alone, Piazza Affari lost more than 6%. In the week of February 28 to March 4, my country’s stock market fell by more than 12%, which is no doubt a warning to stock exchange banks. The securities that pay the highest price are those of the bank. Only on March 4, four Italian banks lost a lot of money despite being the largest credit institutions in Italy.
The reason for the collapse is that the credit activities of our credit institutions are involved in the Russian economy.
Our banking system has an exposure of over $ 25 billion and, together with France, is one of the largest in terms of credit.
What are our bank accounts and savings at risk in war?
Of the $ 25 billion, an Italian bank has nearly half its exposure to Russia, with a credit line of over $ 13 billion. This figure equates to 3% of the group’s total credit risk. The exposure of another Italian bank to the Russian system is equal to 1% of the group’s total. These credits can become bad debts, affecting the next budget. But what effect do these numbers have on the bank’s customers, their accounts and their savings?
To answer this question, we need to distinguish between shareholders, bondholders and account holders. Those who hold bank stocks in their portfolios are currently paying a very high price for the war.
However, it must be clearly emphasized that the loss of shares will not affect the soundness of banks and our banking system. Sanctions on Russia could seriously affect the balance sheets of our banks, as well as the balance sheets of other companies that export to the country.
Those who have a current account, on the other hand, are not at risk. Account holders can rest easy thanks to the Interbank Deposit Protection Fund (FIDT). The fund guarantees deposits of up to € 100,000 in bank accounts.
What are the risks for the people who hold bank bonds?
The same goes for people who hold bank bonds. Holders of bonds issued by Italian banks, including those with the greatest exposure to Russia, are not at risk for now. Bonds issued by our credit bureaus will be repaid periodically upon maturity. Incidentally, the prices of these securities were not significantly affected.
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