the small average size of commercial firms, and the rigidity in the supply of innovative services. in many areas of the country this backwardness is aggravated by the size of the underground economy and in some cases by widespread illegality. modernizing italy ’ s payment system and integrating it in the wider european market will bring benefits far beyond those directly deriving from the introduction of new instruments and new technical standards. the changes now under way, boosted by sepa, will bring clarity and transparency to business relations throughout the 4 economy and not just in the payment sector. market players will be encouraged to revise their organization and code of conduct. the public sector will have the tools and procedures they need to improve payment transactions with firms and the public. in this way, the creation of a modern, competitive and reliable payment system in italy will help to build a more efficient and transparent productive system. in the 1990s, following the recommendations of the white paper on payment systems in italy, we successfully undertook a broad reform of interbank settlement procedures to bring the country into line with the most advanced european standards. today, we must take the opportunity offered by sepa to improve the supply of payment services in italy, with benefits for the public, firms and the public sector. this is the route we should follow. i hope that this conference will yield suggestions, observations and ideas for mapping the future development of italy ’ s payment system as part of the broader growth and modernization of italy in europe. thank you. payment services represent 15 per cent of banks ’ total operating costs. bis central bankers ’ speeches

placement and initial purchase of bonds. they would be acting in their own interest by earning commission fees which have grown in the meantime19 and they would restore balance to a market that is currently dominated by foreign banks. conclusions to conclude, relaunching the economic development of our country after more than twenty years of stagnation or overly slow improvement is the absolute priority for italy. if our nation does not increase its wealth it will eventually decline, despite its talent and the capabilities recognized the world over. development must be harmonized and sustainable over time, but it is a sine qua non. we can only return to financial balance if there is greater development. nevertheless, relaunching development is not easy ; we need to make big changes to italy ’ s underlying character and to the political choices of our national community that are deeply rooted in the distant past. on this day, we are examining some of these central aspects : the education system, competitiveness, and the financial system. we must not tire of debating these themes, and we should not hold back or be afraid of expressing our ideas. if the ideas are right and convincing, action will follow. see albareto, g. and marinelli, g., ‘ italian banks and market - based corporate financing ’, banca d ’ italia, questioni di economia e finanza ( occasional papers ), 432, 2018. designed and printed by the printing and publishing division of the bank of italy