Tuesday, August 2, 2016

Stress tests do not cure the banks – L’Espresso

The  stress tests do not cure the banks

A difficult morning again for banks on the stock market, which in a global context rich unknowns do not find the strength to recover from the descent yesterday. Among the worst titles there is still Unicredit that mid-morning lost almost 5 percent, mentere holds up better Intesa Sanpaolo (-0.95 percent), while MPS goes back on the progress of the past and lost almost 6 percent.

the eyes of investors these days are focused on the reaction to the stress test which involved five major Italian banks (in addition to the three mentioned, also Banco Popolare and Ubi Banca ), but also on the first half of 2016 results, expected in a week.

a not bright signal came this morning from Germany, where the Commerzbank group has announced it has seen in the period January-June operating profit down from 1089 to 615 million euro. Despite the positive results of the examinations conducted by the Authority conducted by the EBA for four out of five banks – only the Monte did not pass the test in a potential adverse scenario in 2018 – markets remain wary, therefore, , even if it is difficult to expect immediate major change in the prospects. Standard & amp; Poor’s in a report he put on paper that European banks, nell’inisieme, are stronger and which is not expected an immediate change in the credit rating institutions.

Matteo Renzi


 That situation is, quite different from 2014 when the exams were involved in the fall 15 Italian banks are subject to “the” stress tests even more complcate. On that occasion, the negative report card was still touched by MPS and Carige for which had been indicated a lack of capital for 2.9 billion total. Both were then put in place what in jargon is called “capital plan”, a capital strengthening plan. Under scrutiny, as well as Siena and Genoa, were over 13 other banks. Among these, 7 were found to be in deficit: Veneto Banca (to 714 million), Banco (693 million), BPM (to 684 million), Banca Popolare di Vicenza (682 million), Creval (377 million), Sondrio (318 million), Bper (128 million). These report cards had resulted in the strengthening and revitalization measures in the majority of cases were successful, in others – it is the case for example of Vicenza and Veneto Banca – still in progress.

It is therefore in the context very difficult general who is probably framed the negative reaction of the markets to the stress test, as the entire banking sector – in Europe and in Italy – seems to struggle to get back on the road on a path of recovery . To the point that, as suggested recently by the International Monetary Fund, may be necessary to perform stress tests also on smaller banks, which have been spared this time.

The work of strengthening the sector, however, it remains fully in the course. The two Venetian banks, for example, after scandals and changes of management, have launched recapitalization of 2.5 billion overall. Following losses monstre and reputational crisis, the rescue took place under the direction of Atlas, a fund created to secure the system. The vehicle, stored recapitalisations, however, is not able to quote the institutes as scheduled because it was not achieved the necessary float (25 percent) to allow, as per regulation, the landing on the list. Now the fund is the main shareholder (almost totally controls them).

In Vicenza has already held its first meeting of shareholder and started, together with the new management (to the Francesco Iorio and President Gianni Mion), to work for the future of the bank. The Fund, however, so much as in Vicenza in Veneto Bank is expected to leave the capital. The exit will not be immediate and will happen only when you have finished the restoration work and completed the design to strengthen institutions, perhaps through an aggregation. Meanwhile, on August 8 Montebelluna will host the meeting of shareholders of Veneto Banca. An event that will mark a clean break with the past, as it will be named the new board weblog Atlas.

Another page difficult for the banking system bears the names of Banca Popolare Etruria and Lazio , Banca delle Marche , Bank of Ferrara and Chieti Savings Bank. The four institutes, now chaired by Roberto Nicastro, after they were police, were made safe with the decree saving banks in November. Non-performing loans have been separated from the “good” bank and institutes have been offered for sale. For now, for so-called good bank, three bids have arrived. Apollo and Lone Star have come forward to detect the whole package of the four banks, as advocated from the outset by the sole shareholder the Bank of Italy. A third offer was presented to only detect the Bap insurance companies of Banca Etruria Life (a possibility provided by the notice issued in January). While a fourth envelope would be sent by the private equity fund Apax to ask for more time to get back in the match. Now the offers will be analyzed by the advisors of the Resolution Fund, Societe Generale and Chiomenti, and then Via Nazionale will have to comment on them. Difficult than the Interbank Deposit Protection Fund falls into the field. Through its voluntary scheme the vehicle chaired by Salvatore Maccarone could, by law, take action. The argument, however, seems out of the question as appeal lacks the necessary capital to enter the game. The goal remains to cederele banks bloc by September.

The popular larger banks are grappling with the transformation in soscietà by shares, following the reform of cooperative banks wanted by Renzi government. An event long overdue but the cooperatives have regularly sent back, except for Ubi Banca. Excluding the BPM and Banco Popolare running dispatched to the first (and perhaps the only) great fusion of the year, the six large convene remained popular in all likelihood the assemblies after the summer: the shareholders, between October and mid-November, they will be called to vote on this historic step that involves goodbye to per capita voting. A necessary step required by the reform that, if no transformation in spa, provides for the institution’s liquidation. In view of this appointment some banks are working to strengthen governance. Some institutions like the BPER WOULD interloquendo to strengthen the weight of foundations in the capital and so create a hard core of local shareholders are able to think about the long run.

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