Rossi (bank of Italy): think of ad hoc interventions for future redundancies in the banks – The Sun 24 Hours

For the Italian banks, “the problem of problems” is the low profitability, and you will need to “accelerate the rationalisation of the organisational structures of central and of the network of dependencies on the territory, in order to absorb the excess production capacity that you determined in these long years of crisis”. So the director general of the Bank of Italy Salvatore Rossi, who points out that “in not a few cases will be inevitable interventions on the staff: you will be able to use the shocks to existing social, that is, early retirement financed by the solidarity fund of the sector, which has been recently extended to the use; but, if necessary, will require ad hoc interventions”.

Rossi (bank of Italy): preserve the stability

To promote the recovery of the profitability of Italian banks will need aggregations “especially among medium-sized banks, where the possibility to exploit cost synergies and to diversify the sources of revenue appear to be the most high”. Red, in the intervention day-to-Day Savings, it also recalls the peculiarities of the Italian banking sector, the large burden of non-performing loans. “Although the deterioration of the quality of loans has shown a recent slowdown, and have been initiated the first steps of the transfer of the sufferings, the disposal of the stock of non-performing loans will inevitably take time”.

Institutes lose “weight” by yielding non-core assets
The Italian banks, to meet the challenge of the change in course demanded by the new rules and the challenge of technological change, “they must do physical exercise in order to lose weight and recover agility”. With this metaphor the director general of the Bank of Italy Salvatore Rossi in his speech, means “to increase, first of all, the ability to withstand external shocks, to the turmoil on the financial markets, in order to continue to support the economy even in times of adversity. But also divest the activities which are not strictly functional to the trade of the bank, so that you can focus on the core business; increase the levels of efficiency and productivity; use savings to increase investment, both in technology and training of human resources. It is, in other words, to change the business model”.

Banks, mergers more than halved compared to 2007

Tools to avoid liquidation good bank
There are “tools and alternative hypotheses and find a positive solution that is different from the clearance”. Is the thought of the director-general by the National regarding the state of the art of negotiation for the sale of four good bank (Banca Marche, Carichieti, Carife, Banca Etruria). Red recalled that on the issue, there are many actors around the table: by the supervisors, national and supranational, of the four banks that leads into the first row of the negotiations, by the european Commission that interloquisce with the Italian government.
The governor of the bank of Italy also remembered that the supervisors are of course aware of the fact that the potential buyers of the four banks maintain a profile of solidity.

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