“The heritage of Italians as an engine for growth” – Corriere.it

Gian Maria Mossa has been Chief Executive Officer of Banca Generali since 20 March 2017. The group is one of the largest player in the management of the wealth of Italians, with assets equal to 83 billion euros.

Mossa, in the last month the episodes Svb, Credit Suisse and Deutsche Bank have shaken the financial markets. Are the perplexities that have emerged reason to exist or has everything returned to a bed of tranquility?
«We must not lose sight of the macro view of what is happening. The largest change in monetary policy in history has been recorded in the last three years. We had, immediately after Covid, an extraordinarily expansionary monetary policy. Then, a series of factors, including the war, let us not forget, caused a huge inflationary shock which, in reaction, was answered with the largest synchronized monetary tightening in history. This simultaneity of effects has created an unprecedented situation which has complicated the pursuit of the objectives of price stability and financial stability for central banks. That said, I remain optimistic.”

THEThe sudden rise in interest rates risks penalizing the real economy. Especially SMEs.
«The desired effect is the cooling of the economy, to avoid an inflationary spiral. However, on the other hand we see a fiscal policy that will remain expansive for a long time, with private consumption continuing to hold in any case. I think the markets are rewarding governments’ willingness to support the economy more than concern about monetary tightening. They are elements of optimism ».

But couldn’t it have been done differently on rates?
«I have a lot of faith in monetary policy. When inflation rises so violently, you have to do everything to prevent it from influencing future price expectations. Because if inflation then trickles down to wages, then we could have a serious problem. I don’t think central banks had much of a choice, but I believe they are demonstrating great intelligence, being quick to backtrack when they see the danger of a bubble bursting. Let’s look at what the Fed has done: in the last few quarters it has withheld liquidity and in three weeks it has re-injected practically everything into the system…».

Should Svb, Credit Suisse and the collapse of Deutsche Bank be considered as episodes or are they a sign of potential fragility?
«If we look at the path taken by the banks in the last ten years, it is surprising how much progress has been made in terms of costs, transparency and capital strengthening. Giant steps. This is also thanks to Regulators be careful, here in Europe. The ECB has created unprecedented antibodies for us. What happened is due to some peculiarities of the subjects involved, I think that talking about possible contagion makes absolutely no sense”.

Yet a large bank like Credit Suisse has had difficulties with At1-type securities. How do you explain it?
«The risks of bankruptcy of individual companies exist and will always exist, in all sectors. That said, we cannot generalize: what happened with Credit Suisse could not happen in the European system: the ECB was very clear in this regard”.

2022 has been a difficult year on the markets. 2023 had started well before slowing down on the crises of Svb and Credit Suisse. How will it end?
«The first quarter was quite strong, also in reaction to what we saw last year. Then it was the perfect storm, where the bond market lost more than the stock. Today, therefore, let’s not underestimate the positive effect of having a hard core that comes from bond yields. Having said that, the stock market is not cheap, but in my opinion companies have seized the opportunity to restructure and are now stronger and healthier. Therefore, the quality of the companies and the generosity of the governments ensure that the context in the medium term is still favorable to the markets».

But how do you see 2023?
«I was more skeptical than others at the beginning of the year. Instead, the market has reacted very well and has already come a long way. I believe that, in a positive scenario, there may be some external factors that could have an impact today. In addition to the war in Ukraine, I see possible tensions from the Sino-American confrontation and from the price of oil after the recent production cut decided by OPEC».

Inflation is a great danger for the saver. What are your customers asking for?
“Protection. Today the propensity to take risks is at a minimum, so the simplest thing is to offer coupons, with government bonds or bond solutions. However, I believe that something different is needed in this context. If the customer asks for protection and certainty, the entire insurance world is back in vogue, with worthy answers».

Is Ubs taking Credit Suisse just a bailout or is it reopening the issue of sector consolidation for Italy as well?
“It is clear that the bar has been raised. A gigantic player has been created with which everyone will be required to deal with, in any sector. And there is no doubt that if Italy wants to compete at an international level it must embark on a process of consolidation, with the necessary differentiations from sector to sector. In my view, it is above all in managed savings that it would be appropriate to build something solid and more structured, because we have to re-appropriate the product factories and because we are talking about a great national heritage».

Consolidation also inasset gatheringyour specific industry?
«There has already been an initial phase of consolidation in our business and this is demonstrated by the fact that the first four-five players are very strong, even if with very different business models. I therefore see a little more difficult, at the moment, an aggregation in this sector. We have made a series of small acquisitions and all aimed at expanding our service model, in order to have an important competitive advantage».

Will the path, already traveled a couple of times, even if never to the end, that saw you near Mediobanca be retraced?
«I think we are the only true one as well player dedicated to the world of wealth management. This is why there has been great interest in us and I would be surprised otherwise. I also believe it is intelligent behavior to look constructively at any operation that creates value. Having said that, I am the manager, I am very happy with the company I lead and with the brand that we represent and therefore I would address the question to the shareholders”.

You have been with Banca Generali for ten years. A period in which the bank saw its assets increase from 25 to 83 billion euro. What will the next ten be like?
«Being able to place Banca Generali on the podium of the groups with the largest assets under management in theprivate bankingbehind only the two large commercial companies, is an important result, unhoped for ten years ago and a great satisfaction because we were the first to introduce a structured logic of wealth managementin a consulting network. In recent years we have always paid close attention to remunerating shareholders and sustainability. In our industry, the difference is made by the professionals you work with and I am truly honored to lead one team so capable. Here, if I look ahead, I would like to be able to amplify the scope of the figure of the financial advisor in Italy, above all by attracting new talent and at the same time achieving the objectives of our industrial plan”.

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