Italy's banking system is ''solid and resilient'' because it largely relies on savings deposits, the Executive Director of the International Monetary Fund for Italy, Arrigo Sadun, said on Wednesday.
Speaking to ANSA, Sadun said Italian banks have demonstrated ''a great degree of prudence...the system is more traditional and so has shown to be more solid'' than some foreign banks during the credit crisis.
Banks have also been helped by Italy's ''very strict, very prudent, very good regulatory system,'' said Sadun.
Another positive contributing factor is the ''comparatively smaller debt of Italian families and businesses''. This has made local banks' accounts ''less vulnerable and consequently has given them greater stability''.
Sadun also praised Italian and European officials for their efficient reaction to the credit crunch by guaranteeing bank deposits.
''It was the aspect of the crisis which worked best. In fact, it avoided a rush to withdraw funds''.
On the economic crisis in general, Sadun said Italy ''obviously feels it but it's not in the eye of the storm.
''Italy has had moderate but healthy growth unlike other countries which have grown with 'steroids'. That's why Italy is not a special case and is not as badly off as some others''.
