Monday, December 26, 2016

Italian Bank Monte dei Paschi in need of more capital

The troubled Italian Bank Monte dei Paschi needs from the point of view of the ECB more money than first thought. So far, the ECB has estimated the need for capital by five billion euros, 3.8 billion to come again.

The Italian crisis Bank Monte dei Paschi needs more money than previously thought. The European Central Bank (ECB). They estimated the capital needs of the financial institution with 8.8 billion euros. So far, the total had been estimated at five billion euros. However, the financial position of the Bank in the period from the end of November to the 21st century. December deteriorated dramatically again, according to the statement.

The third-largest Bank Institute in Italy has been stuck for years in the crisis – the house is sitting on bad loans in the billions. In the summer, a rescue had been developed the plan for Monte dei Paschi: Fresh money from investors to get, spot removal, offices closed. However, the Plan was to come back, especially to many investors it seemed unsafe to put your capital in view of the difficult political situation in Italy in the ailing Bank. Therefore, Monte is can dei Paschi, the deadline for the implementation of the Plan until the end of the year it is impossible to comply with.

To the final to prevent the collapse of its banking sector, was approved by the Italian government in the last week, a stabilization Fund of 20 billion euros will be provided to help the banks out of the crisis, especially Monte dei Paschi.

Federal Bank President Jens Weidmann warned against too rapid subsidies from the state side. “State funds are to be used only as a last resort, so the bar is set appropriately high,” said Weidmann in the “image”-newspaper. The Bank had to be at the core of an economically healthy. The money should not be used to cover foreseeable losses.


No comments:

Post a Comment