even more important to seek the necessary complementarities with good regulation and supervision. reduction of the risks for customers also depends on the reform of the rules governing non - bank intermediaries that grant credit, financial agents and loan brokers. in recent years the bank has paid a high and increasing level of attention to such reform. the objective is to have rules that encourage a smaller number of sound and professional operators, together with reliable and diversified channels of distribution that can also stimulate competition in the sector. we have worked to permit the prompt application of the new rules. the usual cooperation was provided to the ministry for the economy and finance for the drafting of the implementing measures within its sphere of competence ; the framework for the supervisory rules to be applied to financial intermediaries is being prepared after a first round of public consultation ; the necessary support has been provided for the start of operations of the financial agents and loan brokers oversight body, which a few days ago began to accept new registrations. in june the council of ministers approved the first reading of a measure that introduces further amendments to the text of the reform and is now being examined by parliament. as regards the rules for financial agents and credit brokers, care must be taken to avoid uncertainty about the duties and powers of supervision and interpretative and applicative difficulties for the market. * * * the italian economy needs intermediaries and financial markets that allocate the savings entrusted to them in the best possible way and at the lowest possible cost. in this period banks are being called on to make difficult decisions : to ensure viable businesses continue to be financed and to avoid prolonging support for those destined to fail. this is the essence of sound and prudent management. the timing and strength of the economic recovery also depend on the outcome of these choices. in italy the ratio of corporate debt to gdp is similar to the level in the other leading euro - area economies. here bank loans to the productive sector are a larger share of the total, a difference that is only partly explained by the greater presence of small and medium - sized firms. for many businesses bank loans are the sole source of external funding, even though their size and characteristics are comparable to those of firms that in other countries raise funds directly on the capital markets. a very large portion of the risk stemming from business activities falls on banks ’ balance sheets, and in times of recession translates into impaired loans, bad debts and losses, with serious repercussions on the flow

prices ; the bank in turn obtains information regarding market participants'views on economic activity and prices from interest rates formed in financial markets as a result of transactions carried out by market participants, and uses it in making its assessment of economic activity and prices. we think such a two - way communication process is important. if, however, the central bank were to indicate a specific time schedule for a policy change, market participants would carry out transactions based not on their own views regarding economic activity and prices but on the bank's indication. therefore, we think it is vital that the central bank's communication to the public should be limited to the extent i have just outlined for the market to fully perform its function of price discovery and allocating resources efficiently. the bank will continue to conduct monetary policy appropriately and to contribute to achieving sustainable economic growth under price stability.