Saving as a business tool
The Governor of the Bank of Italy provides a clear summary of the relationship between development and the financial behaviour of citizens
Savings to help companies. A well-known, virtuous mechanism, above all in challenging times like these. Ignazio Visco (Governor of the Bank of Italy) analysed the relationship, functions and connections associated with saving, during his recent address to mark World Savings Day 2021.
After having placed a few key details of the period that the economy and society are currently experiencing in context – and more specifically the efforts to recover from the Covid-19 pandemic -, Visco focuses on the “legacy of the two previous episodes of crisis”, noting first and foremost that the return of production “alone” at this point would not be sufficient, before going on to take a closer look at the link between “the savings put aside by families and the strengthening of the financial structure of businesses”. Specifically, the Governor states: “In order to ensure that savings are effectively channelled to support the activities of the businesses resident in our economy, it is essential to (…) take action, above all with regard to the financial instruments on offer. This would increase the potential of attracting foreign fund investments, and in so doing, draw benefits for the developments anticipated with regard to the creation of a genuine single capital market within the European Union.” This is one of the key points at the heart of Visco’s argument: savings can provide concrete help to businesses, as long as the right tools are available. But in isolation, this is not enough, as the Governor goes on to say, because “in addition to the measures designed to increase the range of financial instruments available for businesses, there are also those created with a view to increasing protection for savers and investors. Fairness and transparency in the dealings between intermediaries and clients are also fundamental in attracting investment.” This is one of the core elements of a healthy economy: trust is an effective “fuel” for any development. The goal to be achieved, says Visco, is very important, and regards access to savings for productive investments on the one hand, as well as access by businesses – especially those of small and medium size – to the capital market on the other.
As ever, Ignazio Visco keeps things clear and simple, even when discussing complex issues that are evolving and changing. An address to be read, and then re-read.
Address by the Governor of the Bank of Italy. World Savings Day 2021
Ignazio Visco
Bank of Italy, 2021
The Governor of the Bank of Italy provides a clear summary of the relationship between development and the financial behaviour of citizens
Savings to help companies. A well-known, virtuous mechanism, above all in challenging times like these. Ignazio Visco (Governor of the Bank of Italy) analysed the relationship, functions and connections associated with saving, during his recent address to mark World Savings Day 2021.
After having placed a few key details of the period that the economy and society are currently experiencing in context – and more specifically the efforts to recover from the Covid-19 pandemic -, Visco focuses on the “legacy of the two previous episodes of crisis”, noting first and foremost that the return of production “alone” at this point would not be sufficient, before going on to take a closer look at the link between “the savings put aside by families and the strengthening of the financial structure of businesses”. Specifically, the Governor states: “In order to ensure that savings are effectively channelled to support the activities of the businesses resident in our economy, it is essential to (…) take action, above all with regard to the financial instruments on offer. This would increase the potential of attracting foreign fund investments, and in so doing, draw benefits for the developments anticipated with regard to the creation of a genuine single capital market within the European Union.” This is one of the key points at the heart of Visco’s argument: savings can provide concrete help to businesses, as long as the right tools are available. But in isolation, this is not enough, as the Governor goes on to say, because “in addition to the measures designed to increase the range of financial instruments available for businesses, there are also those created with a view to increasing protection for savers and investors. Fairness and transparency in the dealings between intermediaries and clients are also fundamental in attracting investment.” This is one of the core elements of a healthy economy: trust is an effective “fuel” for any development. The goal to be achieved, says Visco, is very important, and regards access to savings for productive investments on the one hand, as well as access by businesses – especially those of small and medium size – to the capital market on the other.
As ever, Ignazio Visco keeps things clear and simple, even when discussing complex issues that are evolving and changing. An address to be read, and then re-read.
Address by the Governor of the Bank of Italy. World Savings Day 2021
Ignazio Visco
Bank of Italy, 2021