“Politically very unfair.” So the Bank of Italy governor Ignazio Visco, from Florence to the conference on the State of Union, said the passage of the ‘interview on Saturday 30 April at the Corriere della Sera Elke König, President of the Single Council resolution that, citing Mikhail Gorbachev ( “who comes late is punished by history”), had said that the intervention of Germany in favor of German banks had occurred when he was granted, before the change of the rules and that Italy would arrive late. “He quoted Gorbachev and so very politically incorrect told: if you arrive late you get punished by history,” Visco said in reference to the non-use of aid by the Italian Government to the banks during the 2011-2012 crisis. “This is wrong. There were no conditions between 2011 and 2012 to establish a bad bank for non-performing loans (non-performing loans, ed ) Italian simply because the level was not the level of today and l ‘ amount it has materialized mostly after the sovereign debt crisis and the Commission’s position is that the state aid is not allowed. ”
“Exaggerated market concerns about the Italian banks’
Visco has analyzed in depth the credit system in Italy and its complexities, linked largely the weight of impaired loans: according to the latest data is nominal € 360 billion, down to 200 billion if we consider the NPLs, which in turn are reduced to about 83 billion if we consider net of write-downs. And also these 83 billion of net non-performing loans are covered, recalled Visco, by real estate as collateral.
The governor is not worried: “In the case of Italian banks there are good reasons to believe that the market’s concerns about asset quality should be taken into serious consideration and should not be paid, but there are good reasons to believe that they are exaggerated. ” This is because it is true that “the sufferings of the Italian banks are certainly considerable: has to be seen that banks have on average a high level of guarantees against the suffering and the suffering are more than fully covered by real estate collateral and other guarantees.”
Atlas can work even if limited resources
However, the amount of impaired loans should be reduced, to the benefit of the banks. The fund Atlas has resources “to some extent limited” but “can help unlock the market for non-performing loans, contributing immediately to a solution which however will only take time,” said Bank of Italy governor. Words that assume a specific gravity of particular importance when you consider that it was Ignazio Visco, a couple of years ago, the first to speak of the need to create a bad bank for systemic way address the problem of bad loans. Still on the bottom of Atlas, the president of Intesa Sanpaolo MariaGros Gian-Pietro he said that “Atlas has the capacity to do everything that is currently, also because it can activate the lever at various levels.” Atlas has collected 4.25 billion, of which 30% at least have to be engaged in non-performing loans (NPL). The increase of the capital of the People of Vicenza took resources to 1.5 billion.
In this scenario, the reorganization of the banking system, he added Visco, “an important contribution to the non-performing loans problem should also come from new measures to speed up the recovery procedures credits just announced by the Government that I very much welcome, and on which a thorough assessment of its likely impact amount is currently under way, “concluded the Governor. Who specified as “a reduction of two years in the recovery of claims times could even lead to halve the level of bad debts as a proportion of the total.”
The bail-in can create instability, serves a public protection
The Governor of the bank of Italy in his speech in Fiesole also reported some possible risks on the horizon related to the rules on bank bailouts. According to Visco, a tool like the bail-in (internal rescue), “designed to reduce the impact of a crisis must not create the conditions to make them more likely if this is the case, its implementation needs to be rethought.” “We must find the right balance: in fact, investors who have been affected by a bail-in will be able to find comfort in the fact that they have been protected as taxpayers,” he added.
But it is said that the bail-in always works. “If it fails a supermarket, close and another opens. If a bank fails, that is very unlikely to open another, it is more likely that the next start to have problems. ” And he explained: “It is now clear that markets do not always find a balance on their own and when this does not happen the consequences can be quite serious,” he circumstances. “This requires the ability to resort to a public protection ‘in particular’ in a supranational union like ours, in the presence of systemic risks and the risks of contagion.” This is something that differentiates banks by companies that operate in different industries. “
May 5, 2016 (edited May 5 2016 | 17:05)
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