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Italy's Banks Could Strengthen Capital Ratios with Record Profits
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Italy's banks could use their record profits to strengthen their capital ratios and reverse the decline in risk-weighted exposures. The governor of the Bank of Italy suggests that banks could utilize their excess capital to support the economy in the event of financial system shocks.
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How might the decline in risk-weighted exposures affect Italy's overall financial stability?
How might the strengthening of capital ratios impact Italy's banking sector?
What are the potential risks associated with the use of synthetic securitization deals and state guarantees?
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