Mps yields over 5% after denial Santander and new requests ECB … – Reuters Italy

Mps yields over 5% after denial Santander and new requests ECB … – Reuters Italy

       

MILAN, January 9 (Reuters) – Mps is down sharply today after the jump yesterday, penalized by the loss of the speculation about an interest from Santander and news that the ECB has asked the European institutes new capital requirements, exceeding Basilea3.

       

At around 11.30 the title driving the decline of Italian bank with a decline of 5.07% to 0.494 euro in a market that yields 0.8%. BANCO POPULAR, Unicredit, UBI and Mediobanca yield more than 2%.

       

The banking sector is the most targeted in Europe, where the Stoxx yields 1.8%.

       

Yesterday MPS recorded a strong rebound (+ 12.3%) in the wake of the announcement of a capital increase of Banco Santander who gave space to the hypothesis of an input in the Sienese bank, however, disproved in the evening from Madrid .

       

Today raining realizations, also fueled by rumors, later confirmed, of new demands on target minimum capital, specific to each institution, by the ECB. A Mps the European Central Bank gave a provisional indication of Common Equity Tier 1 (transitional) of 14.3% and expects a response from Siena by 16 January.

       

MPS, which has yet to implement a capital increase from 2.5 billion to bridge the equity gap emerged at the end of the test in Europe last October, had in late September a CET1 (transitional) of 12.8%.

       

“The title continues to show marked volatility, which depends on the speculations on the possible involvement of the bank in the process of European consolidation and expectations on the pronouncement of the ECB on the capital plan, intended to strengthen the capital ratios of the group”, commented this morning ICBPI citing rumors of the Sun on the ECB requests.

       

“The ECB does QE from either side penalizes banks,” quips a trader, however, convinced that most Italian banks are above the targets set out by the supervisory board in Europe.

       

According to the Sole24Ore the target medium required to Italian banks amounted to 10.5% compared to 7% minimum Basel 3. The newspaper also quotes the objective in UBI, which would be equal to 9.6% (13 % given the transitional end of September). More …