Standards

Draghi challenges Italian banking governance

Mario Draghi, Bank of Italy governor, has warned the country’s banks that they must improve their corporate governance and told politicians to stop interfering in the sector.

Addressing the central bank’s annual meeting, Draghi drew particular attention to the ever-present conflicts of interest resulting from Italy’s widespread cross-shareholdings, which he said have to be resolved.

He added: “A modern financial system does not tolerate the mixing of politics and banking. Let the separation be clear-cut, and both will be strengthened”.

June 2007