Banks Making Huge Profits Should Contribute More, Says Giorgetti

Rome: Italian banks have been and are making huge profits and should therefore contribute to national finances by paying more tax, Economy Minister Giancarlo Giorgetti said Tuesday. “Banks are making huge profits, and for me, as Minister of Economy, banks must go back to being banks,” Giorgetti told a League conference in Livorno ahead of Sunday’s regional elections in Tuscany.

According to Ansa News Agency, Giorgetti explained that banks were originally created to take savings and deposits and lend them to the real economy, thereby performing a worthy function. He highlighted the issue that many banks currently generate substantial profits not through these traditional activities but by managing wealth.

Furthermore, Giorgetti pointed out that many loans today are granted only with a government guarantee, which covers 80% of the loan being given. This arrangement allows banks to operate without assuming significant risks, as they benefit from interest income while the government has to cover any losses. Giorgetti emphasized that the intention is not to persecute banks, but to ensure they contribute what they can or can afford to contribute to the economy.