Wednesday, August 3, 2016

Padoan: for Italian banks is no risk of system – BBC

the NPL, ie receivables difficult to collect for banks, are a problem and must be disposed of. But they do not represent a threat to the stability of the system. Economy Minister Pier Carlo Padoan, spoke Wednesday to the House to give, once again, a message of calm to the markets. “The high stock of non-performing loans – says – 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.” However, their “absorption” is “necessary to facilitate the resumption of credit to businesses and households and reduce the cost, but this inevitably will take time.”

the issue is especially, but not only, Mt. dei Paschi di Siena, rejected by the last and first week of stress tests to a capital increase of up to 5 billion euro. Padoan repeats that the oldest bank in the world is “completely foreign to a resolution scenarios’ which would ultimately weigh on shareholders and bondholders on the institute. But, to return to walk on their own feet, MPS needs to yield 10 billion of impaired loans to Atlas 2, a private investment fund created under the government’s push to intervene in banking crises. The picture, however, has become more complicated than expected. Wednesday 3 the ADEPP, the association that represents 19 pension funds of professionals, confirmed that for the moment ruled out by the operation Atlante 2: “At present – says President Alberto Groves – there are no conditions to proceed to ‘investment”. Padoan notes this: “An effective engagement of individual initiative social security institutions depends entirely on independent evaluations and decisions of individual boards of individual banks and funds.”

Far from the spotlight, the comparison is still open but at this point it is likely that the Cassa Depositi e prestiti is called to make an extra effort. Because already two days ago Poste had made it known that his participation will be lower than in the first Fund Atlas, in which he had invested 260 million Euros. Meanwhile Padoan has signed a decree for the so-called Gacs, the guarantee that the state will grant to the securitization of performing loans. The text now awaits the green light from the State Council. There is still no implementing decree for arbitration on repayments to depositors of the four banks that failed in November, including Etruria. For the moment the first requests for lump sum arrived, that up to 80% of the lost sum for those who surrender to arbitration.

in his speech to the Chamber Padoan also said that “the origin of the banking system problems there are a number of factors ‘, including’ in some cases the errors of management “and” in other cases the illegal conduct of the management . ” Adding that “favorable to the actions of responsibility by the new administrative bodies.” Precisely on this point the deputy of the Movement 5 Stars Alessandro Villarosa asked in the House the minister’s resignation. The Treasury is still shareholder of the Monte dei Paschi. Nell’assembla MPS last April 14 the proposed share of responsibility for the old manager was rejected almost unanimously.

August 3, 2016 (modified August 3, 2016 | 22:50)

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