capitalism generated the central bank and capitalism will come to it again, even if the current infatuation with the financial markets ’ self - regulating capacity were to endure. [ … ] the central bank produces an intangible but essential good – trust – of which capitalism has an immense need. we must not forget that trust, or its synonym “ confidence ”, derives from the latin fide, meaning faith, which cannot be produced simply by contract. in fact the legitimacy of central banks does not lie in their policy activism, or the ability to generate income, or even, save in a highly indirect sense, their efficiency. rather, [ … ] it derives from competence, moderation, the long - term approach, and the refusal to take any tasks beyond their primary role. ” in the end this, perhaps, is what society should expect, if not from the financial sector, from those who are called to look after financial stability.

designed to reactivate market mechanisms, not to remedy the difficulties of individual banks at taxpayers ’ expense. it can also help restore an adequate flow of credit and thus support the economic recovery. bis central bankers ’ speeches the dialogue must be brought to a conclusion rapidly ; protracted uncertainty over this matter can discourage the completion of market transactions. banks must also take steps to improve the data on non - performing loans. the analyses on this subject have brought to light informational gaps that could dissuade potential buyers. data are also needed in order to improve the banks ’ own management of these assets. banks ’ corporate governance the reform of the cooperative banks is now in the implementation phase. the supervisory instructions issued by the bank of italy that complete the reform and enable the launch of the operations needed to ensure that cooperative banks with assets of above €8 billion comply with the new legislation came into effect on 27 june. once it is ascertained that this threshold has been exceeded, the bank ’ s executive bodies must, within a given deadline, draw up and transmit a plan to the bank of italy listing the initiatives to be undertaken within the 18 - month time limit envisaged by the law. in exercising its powers of authorization, the bank of italy will verify that the corporate operations proposed by the banks do not have the effect of perpetuating, under a new guise, the ownership and management arrangements that the law is meant to abrogate. another important step that must be taken is the reform of the mutual banks. while the cooperative bank reform takes account of the emergence of large, often listed, banks whose original links to their local communities had been severed, in the case of mutual banks the issue instead is to create the conditions for them to continue to fulfill their specific function, even in the current context, maintaining their mutualistic connotations and local community links. integration in banking groups is needed to favour access to capital markets in view of high credit risks, as well as to improve the quality of management, increase efficiency and keep costs down. this would not constitute a diversion from the mutual banks ’ original purposes but on the contrary would strengthen their ability to serve their members and their communities, among other things by providing a broader range of services adapted to their customers ’ needs. the completion of the reform will necessitate legislative interventions that promote forms of integration based on membership of banking groups, based on models that have been adopted in other european countries. the bank of italy is monitoring the discussion on these