Moody’s says Ital­ian bank­ing sys­tem out­look neg­a­tive

The Pak Banker - - Front Page -

MI­LAN

Global rat­ing agency Moody’s says the out­look for Italy’s bank­ing sys­tem re­mains neg­a­tive. In a new Bank­ing Sys­tem Out­look pub­lished to­day global rat­ing agency Moody’s said main drivers of the out­look are the rat­ing agency’s ex­pec­ta­tions of con­tin­ued chal­leng­ing op­er­at­ing con­di­tions for the banks; fur­ther rapid as­set-qual­ity de­te­ri­o­ra­tion; con­tin­ued weak prof­itabil­ity and their re­stricted ac­cess to mar­ket fund­ing that is un­likely to nor­malise over the out­look pe­riod. The rat­ing agency noted that many of th­ese neg­a­tive rat­ing drivers have in­ten­si­fied dur­ing the course of 2012, and that this trend is likely to per­sist. While the banks have strength­ened their cap­i­tal po­si­tions, cap­i­tal lev­els re­main vul­ner­a­ble and be­low those of other large Euro­pean bank­ing sys­tems. The com­bi­na­tion of con­tin­ued neg­a­tive de­vel­op­ments, some of which are be­yond ex­pec­ta­tions pre­vi­ously re­flected in Moody’s base sce­nario, and con­tin­ued risks skewed to the down­side, un­der­pin the neg­a­tive out­look and the pres­sures on the Ital­ian bank­ing sys­tem.

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