equanimity and solidarity to the problems raised by the influx of immigrants who reach land in this area. hospitality, open - minded acceptance, rules, controls, law and order, and far - sightedness are closely related aspects of the attitude towards immigrants in search of better living conditions and a more advanced social and human context. today, more than ever before, globalization demands that we pay attention to events beyond our own borders, and not only in the economic field. immigration can be a positive force, particularly in view of the demographic problems facing us, and we should keep an open attitude towards it, provided its negative aspects are tackled and its legality is assured by creating the conditions required for security. 2. this morning, in lecce, i had time to consider the economic outlook for the regions of southern italy. today ’ s guests include representatives of the business world and the professions. firms, all firms, are indispensable and powerful forces of economic growth. a business culture, a drive to improve production techniques, innovate, and manufacture better goods with more value added are crucial for the progress of the productive fabric. although the south of italy has experienced periods of exceptionally fast economic and civil modernization in the past fifty years, it continues to be a national problem. the economy of the south has opportunities and potential. there must be a drive to accelerate the process and overcome dualism, with italy ’ s public institutions, corporate sector and social partners all contributing. the south of italy is hampered by poor infrastructure ; this shortcoming, and particularly the lack of transport and service networks, affects production, which is thus less competitive than in the regions of the centre and north. an additional boost for public works and infrastructure investment is likely to stimulate aggregate demand and create good prospects of recovery. an increase of productivity and competitiveness in the south of italy necessitates an efficient and effective public administration and conditions of safety and legality. moreover, a problem of solidarity exists between the regions of italy with regard to making good use of the institutional and functional forms of decentralization. the available labour force, particularly of young people, and the cultural and environmental resources of the less developed regions constitute a “ reserve ” that can be tapped for growth, to the benefit of the whole of italy ’ s economy and society. technical and scientific capabilities are crucial for governing transformation and avoiding marginalization. basic and applied research play a leading role in international competition, process and product innovation, and

the decision taken by the ecb for significant banks, allowed all supervised entities to operate temporarily below the level of the pillar 2 guidance, the capital conservation buffer and the lcr. the esrb has issued a recommendation that the relevant authorities request financial institutions under their supervisory remit to refrain from paying dividends, buying back shares and paying variable compensation until at least january 2021. there is a case, therefore, for building up safeguards against moral hazard and excessive build - up of risks in markets. we need to reflect, among other things, on a macroprudential framework for non - bank finance. while basel iii comprehensively redesigned the regulatory framework for banks, change has come more slowly to nonbank financial institutions ( nbfis ), especially asset managers, despite the increased size, concentration, interconnectedness and speed of action of the industry. the awareness is growing that nbfi risks involve externalities. with no ‘ basel accord ’ for non - banks, there is enough regulatory variation across jurisdictions to allow for reflection on what worked best, or is likely to work best, in managing market stress and avoiding endogenous amplification of shocks. in the past few years, the first fsb and iosco recommendations on liquidity and leverage in asset management have opened the way ; work on this should continue. an aside on the gold holdings of central banks – answer to a question from the audience. there are historical reasons behind central banks ’ large holdings of gold – a relic, whether ‘ barbarous ’ or otherwise, of the times when gold was the official basis for the international monetary order. there is also an aura of solidity around gold, an instinctive idea that it can be a safe haven in the event of extreme disruptions. there are, in fact, also eminently rational, tecnical reasons to keep gold as part of a central bank ’ s assets. portfolio diversification is essential for central banks ’ long - run financial soundness and thus, ultimately, for their independence. some diversification between ‘ paper ’ assets ( if you will allow me this expression in a paperless world ) and a commodity, specifically one that people often turn to in troubled times, does make sense. according to the escb ’ s accounting rules, capital gains on gold reserves are not recorded in the profits and loss account, but they do show up in the overall capital position and, in this way, they contribute to the balance - sheet coverage of the bank