Smaller Italian banks with outdated business models at risk-Bank of Italy

This post was originally published on this site

ROME (Reuters) – Smaller Italian banks which can’t adapt to transformations that are reshaping the sector are at risk and the government should act to help them stay in business, a senior Bank of Italy official said on Thursday.

Speaking at a parliamentary hearing on the rescue of unlisted cooperative bank Popolare di Bari, Bank of Italy Deputy Governor Alessandra Perrazzelli stressed the importance of emergency measures approved by the government, including the possibility for state-owned bank MCC to buy stakes in banks to help them restructure.

“A crisis of banks rendered more fragile by their small size or their inability to modernize their business model is a concrete risk,” she said.

“We need to avoid a traumatic exit of these banks from the market. It’s not an easy challenge. Such banks are all over Italy but the South faces a situation, including in terms of context, that is particularly difficult,” she said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.