dependence with GDP per capita: with the growth of lending, GDP per capita increases.
The smallest impact on GDP per capita has foreign claims to Italian banks, that have a
positive effect on GDP dynamics.
Consequently, it can be concluded that the Italian banking system is showing a
weak financial stability and ability to withstand stressful situations, while the
macroeconomic conditions in Italy remain unsustainable, due to the structural
problems of the banking system, as well as the low profitability conditions in which all
countries in Eurozone are currently operating. One way to increase profitability is to
consolidate the Italian banking system, but this process is very slow. The country needs
to conduct reforms that would improve the stability of the banking and financial system
as a whole, as it has a significant impact on its socio-economic development.
CONCLUSION
The Italian banking system, where the modern banking business emerged in the
12th century, is currently showing a weak financial stability and ability to withstand
stressful situations, while the macroeconomic conditions in Italy remain fragile, due to
the structural problems of the financial system, as well as low profitability conditions,
in which now all the countries of the Eurozone operate. One way to increase
profitability and profitability is to consolidate the Italian banking system, but this
process is very slow. The country needs to carry out reforms that would improve the
stability of the banking and financial system as a whole, because it has a significant
impact on its socio-economic development.
Regression analysis of the impact of convergence criteria and the ECB interest
rate on GDP per capita has demonstrated that Italy's high public debt is the most
influential factor on the variable with the direct dependence. Similar results are shown
by the regression model of the influence of these independents on the index of financial
stress of the country, which measures the level of tension of the financial system and
represents a comprehensive quantitative assessment of its condition – public debt is
also the most influential factor. The analysis of impact of banking sector indicators on
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