ROME (AFX) - Bank of Italy governor Antonio Fazio said that potential risks of financial instability accumulated worldwide over the past years still exist. During a speech, Fazio said recent fluctuations in equity and property prices could impact the solidity of financial institutions, especially banks. The risk of financial instability can be limited thanks to adequate monitoring, he said, advocating a surveillance at national level. An efficient monitoring "requires the availability of direct, timely and in-depth information, closeness to the subjects under surveillance and the knowledge of the environment in which they operate," Fazio said. Fazio also said that the arrival of foreign banks in Italy has brought new skills, fostered financial innovation and intensified competition