Italy underwent an FSAP in 2005-06 that included detailed assessments of seven key financial sector standards, including for the banking, insurance, and securities sectors. The FSAP team concluded that "Italy's financial system appears sound and- the system's strength is supported by a high degree of conformity to supervisory and regulatory standards." In the areas of financial regulation and supervision, the FSAP highlighted three key challenges: further enhance banking supervision; strengthen the insurance supervisor; and expand requirements on corporate governance, disclosure, and investor protection. The Italian financial system showed much resilience to the recent global financial crisis, although it was affected by the knock-on effects on the economy. This resilience can be attributed to the traditional, relationship-oriented business model and stable retail funding base of Italian banks, as well as to the prudent regulatory and supervisory framework that promoted conservative mortgage lending practices and discouraged banks from participating in complex securitisation activities and sponsoring structured investment vehicles.