diversification and / or limited alternative funding sources, the market continues to force most banks to carry capital positions considerably in excess of regulatory minimums under basel i. for these reasons, u. s. supervisors do not believe the benefits would exceed the costs of requiring most banks to shift to basel ii. however, for the small number of large, complex, internationally active banking organizations, basel i has serious shortcomings, which are becoming more evident with time. developing a replacement to supply to these banking organizations is imperative. first, basel i is too simplistic to adequately address the activities of our most complex banking institutions. basel i categorizes each bank's assets into one of only four categories, each of which represents a certain risk class. each risk class has its own risk weight that is multiplied by 8 percent to get the minimum capital charge : zero for most sovereign debt, 20 percent of 8 percent for most intra - bank exposures and for agency securities, 50 percent of 8 percent for residential mortgages, and 100 percent of 8 percent for all other exposures. these " all other " credits include essentially all corporate and consumer loans, meaning that the whole spectrum of credit quality over which banks do much of their lending - from aaa to the most speculative credits - receives the same regulatory capital charge. the lack of differentiation among the degrees of risk means that the resultant capital ratios are too often uninformative and might well provide misleading information for banks with risky or problem credits or, for that matter, with portfolios dominated by very safe loans. moreover, the limited number of risk classes not only limits the value of the capital requirement but also creates a regulatory loophole that creates incentives for banks to game the system by capital arbitrage. capital arbitrage, in this case, is the avoidance of certain minimum capital charges through sale or securitization of those assets for which the capital requirement that the market would impose is less than the regulatory capital charge. clearly, the market believes that the 4 percent capital charge on most residential mortgages ( 50 percent of 8 percent ) and the 8 percent on most credit cards ( 100 percent of 8 percent ) is higher than the real risk, facilitating the securitization and sale of a large volume of such loans to other holders. this behavior is perfectly understandable, even desirable in an economic efficiency sense. but it means that banks that engage in such arbitrage retain the higher - risk assets for which the regulatory capital

system, which is the backbone of the financial system. 30 banca d ’ italia performs all these tasks, working with law enforcement and judicial authorities, as well as with other national and foreign supervisory and regulatory bodies. * * * banca d ’ italia reviewed 100, 000 complaints from bank customers over the decade 2014 - 23. the banking and financial ombudsman handled 210, 000 complaints, with the assistance of banca d ’ italia ’ s staff. as a result of the latter and of our supervisory activities, more than €1 billion were returned to customers. the insurance ombudsman service will be rolled out over the next few months. banca d ’ italia is responsible for anti - money laundering supervision of financial intermediaries, issues relevant regulations and is involved in setting national and international rules and standards. it carried out about 350 inspections and 1, 300 interventions over 2019 - 23. the financial intelligence unit for italy ( uif ), which works with staff and funding from banca d ’ italia, examines reports of alleged money laundering and terrorist financing ( more than 150, 000 suspicious transactions were reported in 2023 ) and carries out its financial analysis. at national level, banca d ’ italia fosters cooperation with various institutional players through its computer emergency response team ( cert - bi ). together with the italian banking association ( abi ), it chairs the computer emergency response team for the italian financial sector ( certfin ). at european level, banca d ’ italia is a member of the euro cyber resilience board for pan - european financial infrastructures ( ecrb ) and the cyber information and intelligence sharing initiative ( ciisi - eu ) for sharing information and cyber intelligence across systemic financial structures. at national and european level, banca d ’ italia monitors cyber risks in order to strengthen the security and business continuity safeguards of intermediaries. it identifies minimum requirements and measures for information system management. banca d ’ italia manages a large number of italian and european payment infrastructures. for example, at european level, the bank has been involved in the development and is responsible for the operational management of the eurosystem ’ s market infrastructures, consisting of : the t2 system for the real - time gross settlement of large - value transactions in central bank money between financial institutions and with the central bank ; the target2 - securites ( t2s ) platform, which enables securities transactions in central bank money to be settled simultaneously based