Padoan “No systemic risk for Italian banks” – BBC

Signs of confidence when leaving Chengdu, where it ended the meeting of the G-20 countries, by the Italian representatives. Both Economy Minister Pier Carlo Padoan that the Governor of the Bank of Italy, Ignazio Visco at the time to leave China to return to Rome they wanted to report optimism ahead of a week that promises to be hot on the front of the Italian banks . In the first place there is to solve the problem of the Monte dei Paschi di Siena, crushed by billions of euro of Non-performing loans and narrow evaluations by EBA, the European Banking Authority on Friday will announce the outcomes of stress tests simultaneously to institute interim financial statements led by Fabrizio Viola.

Il ministroPier Carlo Padoan

Padoan was clear: “There is no risk, the system of Italian banks is solid, of course, is coming out after a long recession cost 10 percent terms of GDP and of course Italy is an economy based on credit, which is then reflected on the balance sheets of banks. There are – he added – a few critical cases that were limited and solved with a market process. ” Not only. The Italian economy minister was even clearer in view of the upcoming events: “I exclude that at the moment it is necessary to resort to self-rescue mechanisms or Bail-in on Italian banks.”

short time

Il Governor Ignazio Visco

In the same vein, the governor of the Bank of Italy, Ignazio Visco, “I am confident, you have to solve in the short term this particular situation. But it seems to me that many printing signs highlighting what you are working on the matter. At the same time there is to clarify that there is a lot of strength to deal with the problem of Italian banks as a system problem rather than a problem of some banks, “he added. A double needed confidence boost on the eve of a week that promises to be crucial to the solution of some extremely delicate items. In addition to Monte, which could re-ignite the interest of Ubi, there is to finance the Atlas, the operating arm (private) of the Italian credit system that – after saving Popolare di Vicenza and Veneto Banca with a second injection, 5000000000 cash – must now find at least another billion to lift the Monte dei Paschi of a large part of the sufferings which encumbers budgets. On the table, in truth, there would also be a further need for finance.

The game (double ) Atlas

the sale of the four regional banks saved in November 2015 (Banca delle Marche, People’s Etruria and Lazio, and CariFerrara CariChieti), threatens to turn into a giveaway, while the offers of the two American funds (apollo and Lone Star) interested in the purchase of the four institutes are worth about a billion less than it cost the capitalization of four banks: 600 million offered against 1.6 billion paid. Why Bank of Italy, which has to give the green light, could also think of the four banks to withdraw from the sale if intravedesse the opportunity of a talk by Atlas or another systemic Italian entity, provided that the individual lenders not proved interested in the acquisition. But even here it would be necessary a finance intervention when it is assumed only.

The public finance

Padoan, leaving China, also commented on the government’s objectives for the coming months: “We will continue to keep the bar straight on the policy of growth and consolidation – he said -. In a few months we will launch the stability law and evaluate the new macroeconomic framework to a global slowdown light “that already saw before Brexit which will have about some European countries’ limited effects.”

July 24, 2016 (amendment July 24, 2016 | 24:26)

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