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C2  ·  35 words

Banking supervision in Italian

Who keeps an eye on the banks, and with what.

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From these 35 words, as many per round as you like — up to all of them: first what is due today, then new ones. First you choose, then you fill the gap, then you write it yourself. Mistakes come back again shortly.

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The twenty-third entry is l’unione bancaria, and the noun inside it has a relative on the vegetable shelf. Latin unio was built on unus, one, and meant oneness; Roman writers also used it for the bulb that grows as a single ball instead of splitting into cloves the way garlic does. The learned sense travelled through Old French into English as « union », the kitchen sense came through Norman French as « onion », and the two have sat side by side for centuries without anybody noticing they are the same word. Italian took only the first of them: l’unione is the joining, and the vegetable is la cipolla, from another Latin word altogether, cepulla. There is a trap running the other way too. An English reader who meets l’unione may hear a trade union in it, because in Britain « the union » usually means the body that bargains over wages. Italian never uses the word that way: that body is il sindacato, and l’unione stays with states, banks and marriages.

The words

Adjective (3)

Grammar for these: Adjective agreement · Where the adjective stands

sistemicosystemicAdjectiveC2
Una banca sistemica non sparisce senza danni intorno.A systemic bank never disappears without damage around it.
prudenzialeprudentialAdjectiveC2
Il trattamento prudenziale è più severo di quello contabile.Prudential treatment is stricter than accounting treatment.
macroprudenzialemacroprudentialAdjectiveC2
La misura macroprudenziale guarda al sistema, non alla singola banca.A macroprudential measure looks at the system, not at the single bank.

Phrase (1)

onorabile e competentefit and properPhraseC2
Chi siede nel consiglio deve essere onorabile e competente.Anyone sitting on the board has to be fit and proper.

Noun (f) (14)

Grammar for these: Definite article: il, lo, la · Indefinite article: un, uno

l’autorità di vigilanzathe supervisory authorityNoun (f)C2
L’autorità di vigilanza chiede i dati ogni trimestre.The supervisory authority asks for the figures every quarter.
la ponderazione del rischiothe risk weightNoun (f)C2
La ponderazione del rischio decide quanto capitale serve.The risk weight decides how much capital is needed.
la riserva di liquiditàthe liquidity bufferNoun (f)C2
La riserva di liquidità copre un mese difficile.The liquidity buffer covers one difficult month.
la prova di stressthe stress testNoun (f)C2
La prova di stress immagina uno scenario molto duro.The stress test assumes a very harsh scenario.
la garanzia dei depositithe deposit guaranteeNoun (f)C2
La garanzia dei depositi protegge i piccoli risparmiatori.The deposit guarantee protects small savers.
l’ispezione in locothe on-site inspectionNoun (f)C2
L’ispezione in loco dura settimane.The on-site inspection goes on for weeks.
la revoca della licenzathe withdrawal of the licenceNoun (f)C2
La revoca della licenza è l’ultima mossa.The withdrawal of the licence is the last move of all.
la vigilanza consolidataconsolidated supervisionNoun (f)C2
La vigilanza consolidata guarda al gruppo intero.Consolidated supervision looks at the whole group.
l’unione bancariathe banking unionNoun (f)C2
L’unione bancaria ha spostato la vigilanza più in alto.The banking union has moved supervision further up.
la garanzia implicitathe implicit guaranteeNoun (f)C2
La garanzia implicita non è scritta da nessuna parte.The implicit guarantee is written down nowhere.
la riserva anticiclicathe countercyclical bufferNoun (f)C2
La riserva anticiclica si accumula nei tempi buoni.The countercyclical buffer is built up in the good years.
l’aspettativa di vigilanzathe supervisory expectationNoun (f)C2
L’aspettativa di vigilanza non è una legge, ma pesa.A supervisory expectation is not a law, but it carries weight.
la violazione del requisitothe breach of the requirementNoun (f)C2
La violazione del requisito fa scattare una procedura.The breach of the requirement sets a procedure going.
la sanzionethe penaltyNoun (f)C2
La sanzione arriva dopo il contraddittorio.The penalty comes after the hearing.

Noun (m) (17)

Grammar for these: Definite article: il, lo, la · Indefinite article: un, uno

il requisito patrimonialethe capital requirementNoun (m)C2
Il requisito patrimoniale sale insieme al rischio.The capital requirement rises along with the risk.
il coefficiente di leva finanziariathe leverage ratioNoun (m)C2
Il coefficiente di leva finanziaria non guarda al rischio.The leverage ratio does not look at risk at all.
il piano di risoluzionethe resolution planNoun (m)C2
Ogni banca grande prepara un piano di risoluzione.Every large bank draws up a resolution plan.
il processo di revisione prudenzialethe supervisory review processNoun (m)C2
Il processo di revisione prudenziale si chiude con una lettera.The supervisory review process ends with a letter.
i fondi propriown fundsNoun (m)C2
I fondi propri sono la prima difesa contro le perdite.Own funds are the first defence against losses.
il requisito di riservathe buffer requirementNoun (m)C2
Il requisito di riserva si somma a quello minimo.The buffer requirement is added on top of the minimum one.
l’intervento precoceearly interventionNoun (m)C2
L’intervento precoce arriva prima del dissesto.Early intervention comes before the bank is in real trouble.
il requisito di governo societariothe governance requirementNoun (m)C2
Il requisito di governo societario riguarda anche i verbali.The governance requirement covers the minutes as well.
il modello internothe internal modelNoun (m)C2
Il modello interno va approvato prima dell’uso.The internal model has to be approved before it is used.
l’obbligo di segnalazione all’autoritàthe duty to report to the authorityNoun (m)C2
L’obbligo di segnalazione all’autorità vale anche nei mesi tranquilli.The duty to report to the authority holds in quiet months too.
l’obbligo di informativathe disclosure obligationNoun (m)C2
L’obbligo di informativa rende pubblici i conti.The disclosure obligation makes the accounts public.
il meccanismo di vigilanza unicothe single supervisory mechanismNoun (m)C2
Il meccanismo di vigilanza unico riunisce più paesi.The single supervisory mechanism brings several countries together.
il piano di risanamentothe recovery planNoun (m)C2
Il piano di risanamento lo scrive la banca stessa.The recovery plan is written by the bank itself.
il salvataggio internothe bail-inNoun (m)C2
Il salvataggio interno colpisce prima gli azionisti.The bail-in hits the shareholders first.
l’assorbimento delle perditeloss absorptionNoun (m)C2
L’assorbimento delle perdite segue un ordine preciso.Loss absorption follows a fixed order.
il sistema bancario ombrashadow bankingNoun (m)C2
Il sistema bancario ombra fa credito senza essere una banca.Shadow banking lends money without being a bank.
l’esame della qualità degli attivithe asset quality reviewNoun (m)C2
L’esame della qualità degli attivi ha trovato crediti valutati troppo bene.The asset quality review found loans valued far too kindly.

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