The Italian banking system is “not in a systemic crisis, nor a source of vulnerability for other banking systems.” Throws cold water on Economy Minister Pier Carlo Padoan, for days in the trenches to support the solidity of the Italian credit system. During a disclosure to the Chamber of banks and crisis Mps Minister was inspired by the recent stress tests conducted by the ECB to emphasize that the generally positive result, “in the light of the severity of the test, the long and heavy recession across the economy Italian and repeated tensions which financial intermediaries have undergone in recent years, “confirms” the resilience of the Italian system. ” For Padoan, the origin of the problems of the banking system, “there are a number of factors: the economic crisis, the structural rigidities that have accumulated over time and where politics did not devote attention, in some cases the errors of management, in other cases the illegal conduct of management. ”
MPS fails the stress test. Well Italian, stands Intesa
Non-performing loans: higher stock is not threat to financial stability
How high stock of non-performing loans nested in the accounts of Italian banks, this “is not in itself a threat to financial stability, given that the resources that banks set aside to cover these loans and guarantees securing them are large.” Their resorption – he added – is necessary to facilitate the resumption of credit to businesses and households and reduce the cost, but this process will inevitably take some time to complete. ” Speaking of Atlas, the investment fund sponsored by the Italian government to support the banks in their operations to raise capital and to promote the management of credits in suffering, the minister reiterated it has no intention “to force any choice accession to the instrument ‘ . Operators, he explained, “are free to make their own choices,” and Atlas “is an opportunity. To each decision whether to take it or ignore it. ” The Atlas, continued Padoan, “it is a private initiative that introduces the scenario the perspective of a patient investment on non-performing loans, with a reasonable return and not speculative,” and the government “has seen welcome the birth of this intervention tool “.
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