/ 4 bis central bankers'speeches to conclude, macroprudential policy is – so to say – approaching its adolescence, and countries will continue to fine - tune their frameworks and instruments. however, experience with applying these tools is growing. i am confident that through knowledge - sharing and international cooperation, macroprudential policy will play an increasingly important role in safeguarding financial stability – in all parts of the world. 1 imf ( 2018 ), the imf ’ s annual macroprudential policy survey — objectives, design, and country responses. 2 milton friedman ’ s famous line ran : “ we are all keynesians now ". 3 net foreign exchange position is defined as the difference between assets and liabilities in a foreign currency. 4 all member states but one ( italy ) now have a dedicated macroprudential authority in place. in italy, the role of setting macroprudential measures ( available in the common eu regulation ) is currently carried out by the bank of italy. 5 the crr / crd iv rules provide for the common regulatory framework for macroprudential supervision. 4 / 4 bis central bankers'speeches

to overcome their heavy reliance on bank credit. the business sector needs to find other means of financing investment. on the other hand, it is in the banks ’ interest to keep a balance between loans and deposits, and to share with the markets the risks of lending to customers. helping businesses access the capital markets is not an easy task for the banks, requiring the ability to assess firms ’ economic and financial prospects ; care must be taken to avoid potential conflicts of interest. our supervision, conducted both off - site and on - site, reflects our concern for the trends in lending and credit quality. its purpose is to make sure, in particular, that impaired loan coverage ratios are adequate, and are increased whenever necessary. far from damaging the banks, it helps to strengthen them, reassuring the markets as to the quality of their assets. the findings of the inspections carried out between the end of 2012 and the early months of this year are set out in a report published on our website. we are verifying that the corrective measures, including organizational ones, which the banks were asked to take have been promptly put in place. meanwhile, work to verify the adequacy of coverage ratios continues, in some cases also taking in the whole credit portfolio. the opinion, voiced repeatedly during the crisis, that italy ’ s banking system stands in dire need of recapitalization is unfounded. only a few days ago the international monetary fund published the results of its periodic financial sector assessment program for italy. it acknowledges that the italian banking system has managed, overall, to weather the doubledip recession and the sovereign debt tensions, extending its solid deposit base and strengthening its capital. unlike other countries, it has succeeded, notwithstanding the difficult conditions, in raising additional funds almost entirely on the capital market, without burdening public finances and heightening sovereign risk. the banking system ’ s resilience was aided by a model of supervision, regarded by the imf as a pillar of financial stability, which adheres closely to established international standards and is based on intense and strict oversight. the imf also recommended that steps be taken to improve the effectiveness of supervision in some specific areas : transactions with related parties, the requirement for shareholders and corporate officers to act honourably and professionally, and the power to impose corrective measures such as the removal of company directors and executives. the crisis management and resolution system has been effective, making it possible to address the effects of the crisis without affecting the stability of the system. the im