Regulation of the Italian Banking Sector. From the 1936 Banking Law to the European Banking Union

The article traces the evolution of the regulation of banks in Italy from the banking law of 1936 to the recent changes made at European level with the banking union project. Until the 1980s the banking system was characterised by a low level of competition combined with a high level of stability. Banking crises were resolved with the guidance of the Bank of Italy without causing losses to depositors. Following the implementation of the banking union, the regulatory model changed radically. The resolution of failing Italian banks, monitored at European level, has also become more complex due to a strict interpretation of state aid rules by the European Commission. To cope with the new scenarios, Italian banks are likely to have to strengthen or merge