##4. the ecb governing council intends to reduce 1 / 4 bis - central bankers'speeches reinvestments by €7. 5 billion per month over the second half of the year, before discontinuing them from the end of 2024. over the next few months, reinvestments will continue to be made with the flexibility required to counter risks to the monetary policy transmission mechanism. the amount of funding granted to euro - area banks through eurosystem refinancing operations continued to fall significantly, from €1, 324 billion at the end of 2022 to €410 billion at the end of 2023. the decline was mainly due to the repayments of maturing third - series targeted longer - term refinancing operations ( tltro iii ), combined with voluntary early repayments driven by the change in funding conditions, which have been less favourable to banks since november 2022. the balance sheet at the end of 2023, the bank of italy's balance sheet assets stood at €1, 253 billion, down by €223 billion from 2022. the balance sheet reduction is set to continue in the current year as a result of maturing tltro iii operations and of the ecb governing council's decisions to discontinue the reinvestment of maturing securities. on the asset side, just as for the other national central banks of the eurosystem, the decline was mainly due to refinancing operations, down from €356 billion to €150 billion. securities held for monetary policy purposes also declined, though to a lesser extent : at the end of 2023, they amounted to €657 billion ( €39 billion less than in the previous financial year ), with italian government bonds accounting for around €600 billion. on the liability side, there was a decline both in deposits held by banks, which fell by €57 billion, and above all in the bank's negative target balance, down from €684 billion to €521 billion. the sizeable reduction in the latter was largely due to net purchases of italian securities – mostly public sector securities – by foreign investors, and to an expansion in italian banks'net funding on international markets. these liquidity inflows were partly offset by italian residents'investment in foreign securities. the disbursement of the third and fourth tranches of recovery and resilience facility funds to the italian state through the target

34. fourthly, we need to develop an elaborate system for collecting data on real estate and housing activity. statistics on housing starts, house sales – new and old, housing prices, etc., so that our policy decisions can be fully informed and guided by research. conclusion 35. to conclude, we recognise that housing is integrally related to a host of outcomes for the individuals, communities and society more broadly beyond those that are financial or material. quality housing can facilitate psychological and social outcomes such as security and a sense of control over one ’ s life. although commendable progress has been made over the years in the real estate and housing sectors, there is room for a great deal more. availability of adequate housing units in the affordable segment and improved home ownership coupled with access to formal housing finance for the lower income segments, continues to be a policy priority for contributing significantly to all round economic growth. 36. in short, a comprehensive and holistic approach involving easy availability of land, accessible financing, supportive legal framework and innovative technology continues to be the fulcrum required for realising the full potentials of these sectors. 37. thanking everyone for your patient attention. bis central bankers ’ speeches