operating costs, which have been relatively inflexible in relation to the state of the banking industry. the present level of labour costs is unlikely to be compatible with the prospective growth of the italian banking system. the compensation of directors and top managers too must reflect the objective of containing costs. ambitious strategies are needed to boost the efficiency of production and distribution significantly and capitalize on the contribution of new technologies. the widespread adoption of new modes of access to banking services calls for a rethinking of the economic viability of the entire distribution network. at the end of 2011 some 14. 3 million bank accounts held by households and 1. 7 million held by firms were enabled for on - line banking services, respectively five and three times more than a decade earlier. the number of bank branches grew by some 20 per cent between 2001 and 2008, and since then it has declined only modestly. bank mergers and acquisitions have not been followed up by sufficient streamlining of groups ’ organization or reduction in the number of board members. the ten largest banking groups have a total of 1, 136 board positions, not counting foreign companies ; bank subsidiaries alone have more than 700. the other intermediaries too often have overly large boards, which tends to make the individual members unaccountable and reduces board efficiency. such arrangements are costly in themselves and are not justified by the professional expertise needed to effectively manage banks. the recent ban on interlocking board membership between firms in the financial sector is also an opportunity to modify the number of directors. the banks ’ role in allocating resources has to be flanked by further development of the capital markets. for firms, a low proportion of equity capital and reliance on bank credit as the sole source of external finance constitute a factor of fragility in the short term and a drag on their growth potential. the difficulty that no few firms have encountered in accessing credit since the start of the crisis depends in part on their unbalanced financial structures, with excessive debt. equity capital is the appropriate instrument for financing innovation. the incentives for increasing companies ’ capital that are part of the government ’ s pro - growth measures go in the right direction. strengthening firms ’ financial structure also necessitates changes in their relations with banks. in italy 38 per cent of business loans are for maturities of less than twelve months, compared with 18 per cent in germany and france and an average of 24 per cent in the euro area. italian firms ’ greater dependence on short - term

strengthening institutions and developing a pluralistic and competitive local private sector will greatly contribute to mitigating instability and preparing countries to transition out of conflicts and fragility. ida should deploy its suite of analytical and financing tools for conflict prevention and remain engaged during conflicts. overall, we reaffirm the recommendations that we have laid down in the non - paper on fragility, conflict and violence in ida21, together with other donor countries and the africa, eca, mena and lac ( haiti ) borrowers'representatives. job creation and business development across ida countries is our north star in improving local opportunities, especially for the young. this should mitigate the drivers of forced migration, while continuing to improve regional infrastructures, food security, access to energy and health systems and pandemic preparedness. the international finance corporation ( ifc ), working together with ida, should allocate additional resources to better support local companies and business associations. the most recent caf measures for ida allowed us to smooth out the financial implications of earlier frontloading, while also strengthening capital for the next cycles. we look forward to future work to enhancing development impact and further optimizing ida's balance sheet. 2 / 3 bis - central bankers'speeches our constituency appreciates the central role of africa and the partnership built around ida. italy has embraced this same spirit with the mattei plan, a renewed approach to development cooperation that revolves around the gradual agreement of goals and targets co - designed with african countries. it will be rolled out in synergy with international partners, in the areas of education and training, agriculture, health, energy and water. to embark on a path of sustainable growth, the african continent should also play a stronger role in clean energy products'global supply chains. italy fully supports the " resilient and inclusive supply - chain enhancement " ( rise ) initiative, launched in october 2023, including with a financial contribution. italy will work closely with the world bank to ensure a swift implementation of rise during its g7 presidency. above all, a successful ida21 replenishment requires a collective effort from all – donors, borrowers and management. the italian g7 presidency is actively supporting and coordinating this effort. 3 / 3 bis - central bankers'speeches