GENOA, Italy, Feb 14 (Reuters) - The Bank of Italy's governor said on Saturday that a regulatory overhaul aimed at preventing another Parmalat scandal should not hive off part of his ample powers over the banking industry.
A reform bill pending before parliament would for the first time force Antonio Fazio to share anti-trust oversight of the banking industry -- which has given him a veto over bank mergers -- with the country's competition authority.
"The unitary oversight of the credit function must not be impaired," Fazio said in a speech before many of Italy's most powerful bankers, adding that he looked on parliament's effort to bolster controls after the Parmalat meltdown with "confidence and respect."
"The independence of the institutions responsible for controls is of fundamental importance," he said.
Fazio has come under fire from Economy Minister Giulio Tremonti and others who say he failed to do enough to prevent the multibillion euro fraud that brought the near collapse of Parmalat , to which the country's banks lent over one billion euros.
Fazio also said the Italian economy continued to struggle in January, as households' confidence "plunged," while industrial activity "remains slack."
"The difficulties of (the) Italian manufacturing go well beyond those of the automobile and food-processing sectors," he added, referring to the woes of carmaker Fiat , as well as the insolvencies of Parmalat and another food company Cirio.