Euro­pean bank su­per­vi­sor says Ital­ian merger 'must' suc­ceed

The Pak Banker - - COMPANIES/BOSS -

Europe's bank­ing su­per­vi­sor said that she would work hard to en­sure a pro­posed tie-up be­tween Ital­ian banks Banco Popo­lare and Banca popo­lare di Mi­lano (BPM) was a suc­cess.

"We are work­ing very hard with the Ital­ian col­leagues to make sure that we put the ad­e­quate re­quire­ments, no more than is needed but not less ei­ther," said Daniele Nouy, pres­i­dent of the Su­per­vi­sory Coun­cil at the Euro­pean Cen­tral Bank.

The merger "has to be a suc­cess and the bank has to be strong at the very be­gin­ning, this will be the third Ital­ian bank. It has to be in a sit­u­a­tion com­pa­ra­ble to its peers in Italy," Nouy told the Euro­pean Par­liamet's com­mit­tee for eco­nomic and mon­e­tary affairs at a reg­u­lar hear­ing in Brus­sels.

The pro­posed tie-up was "a very im­por­tant op­er­a­tion, it has to be a suc­cess, pre­cisely be­cause it's maybe the first of a se­ries of other ones," Nouy con­tin­ued.

In other coun­tries, a num­ber of sim­i­lar bank­ing merg­ers had "ended up cre­at­ing a worse sit­u­a­tion or dif­fi­cul­ties for the banks com­ing from the merger," she ar­gued.

The boards of both BPM and Banco Popo­lare are meet­ing on Tues­day and Wed­nes­day to dis­cuss a merger.

Ac­cord­ing to Ital­ian me­dia re­ports, a se­ries of cap­i­tal ac­tions, in­clud­ing a lim­ited cap­i­tal hike, are be­ing planned in or­der for the tie-up to meet bank­ing su­per­vi­sory re­quire­ments.

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