##lli, “ relationship and transaction lending in a crisis, ” the review of financial studies, 29 ( 2016 ), 2643 – 2676. level, this aim is being pursued by implementing the capital markets union project : enriching the types of financing available to non - financial corporations, broadening the portfolio choices of investors, enhancing the efficiency of financial intermediation, removing barriers to cross - border investment, and increasing funding options for smes and infrastructure. in italy, a number of additional initiatives with similar goals have been taken in recent years, such as minibond issues, debt funds, tax incentives for venture capital and allowances for corporate equity. yet in italy, as well as in many other european countries, the role played by the financial markets and non - bank financial institutions is still limited. this is why i am looking forward to discussing these issues with our eminent experts. designed by the printing and publishing division of the bank of italy

effects on systemic risk and growth, ” economic policy 31 ( 2016 ), 51 - 106. savings favours participation in capital markets7 and there is evidence that institutional investors have positive effects on corporate governance. 8 a look at the development of institutional investors in advanced economies highlights the challenges ahead. countries in continental europe continue to lag behind the uk and the us. the gap is all the more serious in the pension funds sector, reflecting the relative weight of funded retirement schemes in national social security systems. the gap is very noticeable in italy. for example, in 2015 the assets managed by pension funds accounted for less than 10 per cent of gdp in italy, compared with more than 100 per cent on average in the uk and the us. we definitely need to attain a more comprehensive understanding of the underdevelopment of institutional investors in most euro - area countries. for all of these reasons, policymakers look favourably at the development of market - based financing and the growth of institutional investors. it must be stressed, however, that banks and market - based finance remain complementary, rather than substituting one another, and that a level playing field should be ensured for all financial intermediaries. if regulatory changes put banks at a disadvantage, firms may end up having difficulties accessing both bank and non - bank forms of external finance. indeed, apart from remaining a vital source of corporate funding, especially for smes, banks are uniquely equipped to help firms to access the capital market. moreover, banks offer contracts ( such as overdrafts or credit lines ) and services ( such as lending assistance ) that are often complementary to market - based finance. these contracts and services can be helpful to firms, especially in periods of distress. 9 * * * to conclude, the corporate sector would greatly benefit from a more developed market - based segment within our financial systems. institutional investors play a pivotal role in this structural evolution. at the european scharfstain, d. s., “ presidential address : pension policy and the financial system, ” the journal of finance, 73 ( 2018 ), 1463 – 1512. mccahery j. a., z. sautner and l. t. starks, “ behind the scenes : the corporate governance preferences of institutional investors, ” the journal of finance, 71 ( 2016 ), 2905 – 2932. bolton, p., x. freixas, l. gambacorta and p. e. mistru