ROME: Italy’s central bank and Finance Ministry approved resolution plans for four lenders placed under the Bank of Italy’s special administration clearing the way for their rescue.
To implement the resolution plans for Banca delle Marche SpA, Banca Popolare dell’Etruria e del Lazio SC, Cassa di Risparmio di Ferrara SpA and Cassa di Risparmio della Provincia di Chieti SpA, the country’s cabinet on Sunday approved a decree law which includes procedural measures on the management of bank crises, the government said in a statement.
Regulation approved today includes rules on deferred tax assets, the creation of a national resolution fund, as well as faster procedures for the set up of bridge banks. The decree law does not include any State financing for banks under resolution or for the national resolution fund.
The four companies have been placed under administration by Italy’s regulators after their capital buffers were eroded. Italy has been seeking to accelerate banks’ disposals of soured loans by creating a bad bank, which hasn’t gained the backing of the European Commission. The nation’s bad loans reached a record high of 200 billion euros ($213 billion) in September.
