Edition: India  
> >

Italian banks face sluggish response on cash calls as capital crisis looms

Duration: 01:40s - Published: < > Embed
News video: Italian banks face sluggish response on cash calls as capital crisis loomsLoan writedowns and bad debts, plus a lasting hangover from the financial crisis mean Italy’s banks are on the edge of a precipice. Provisions to cover liabilities on “unlikely to pay” and past due debt are less than half of those set aside for bad debt, limiting the freedom of the banks to get fresh credit on the markets. However ECB boss Mario Draghi insists the debt level is sustainable. “The euro area economy continues to expand at a moderate but steady pace, despite the adverse effects of global economic and political uncertainty. This gradual upward trend is expected to continue, not least owing to our monetary policy measures,” he said. Italian #banks ‘not necessarily #bankrupt’ but awfully close and #europe may hav… #news #market pic.twitter.com/PiNNvZUzEl— Business News (@BusinessNewzzz) 19 novembre 2016 The situation could tilt into crisis if the December 4th constitutional reform referendum leads to the fall of the Renzi government. Then any calls for fresh capital, of which the banks need an estimated 20 billion euros in the coming months, could fall on deaf ears. Only one bank, Unicredit, with foreign assets, is thought to able to weather any market storm. “To the financial markets we say that we have always received the message that structural reforms are the prime asset of Italy’s future. I think that’s something everybody has always said, everywhere. And we think that structural reforms is what the country needs,” said Prime Minister Matteo Renzi. Italy’s third-biggest bank, Monte dei Paschi di Siena is Europe’s most distressed lender and could be the first to fail. It needs five billion euros of new capital and warns it may have to go out of business if it does not get it. Seven other regional banks are also in serious trouble. Italy’s sovereign debt is another separate headache which the government is struggling to fix with the EU urging action lest a new euro crisis is triggered. On Tuesday an investor survey by Frankfurt-based Sentix rated Italy’s chances of leaving the eurozone in the next 12 months at 19.3%, the highest since the index began in 2012, and worse than Greece. Sentix #Italexit index jumps to life-time high ahead of Dec referendum. Almost 20% of investors expect #Italy to leave Euro within 12mths. pic.twitter.com/oWsTXdJjPu— Holger Zschaepitz (@Schuldensuehner) 29 novembre 2016

Share on
Share on
Post on 
Share by

Recent related news

Centre to infuse Rs 8,586 cr capital in 10 weak banks

Contrary to its earlier stand of infusing fresh capital in strong banks, the central government has...
Sify - Business

​Devon parents may have to give their children's schools cash in...

​Devon parents may have to give their children's schools cash in...Parents may have to start aiding their children's schools with cash donations in response to an...
Western Morning News - UK

WATCH New £1 coin arrives at banks in Burton and we hit the...

WATCH New £1 coin arrives at banks in Burton and we hit the...From today, you might start to see a bit of a 'change in your change' as you spend cash in the shops,...
Burton Mail - UK

MB Business Capital Announces $15.5 Million Credit Facility for Tri-State Iron & Metal

MB Business Capital, a division of MB Financial Bank, N.A., announced it recently provided a new...
PRWeb - Press Releases

SBI to complete merger of 6 banks in three months

 State Bank of India, which would start merger process of five associates and Bharatiya Mahila Bank...
DNA - Front Page

Community banks nationally continue to add branches

Despite rapidly increasing use of mobile and online banking, U.S. community banks increased their...
bizjournals - Business

Banks now have better capital buffers than they did last year

Banks now have better capital buffers than they did last yearThe UK's banks now have slightly larger capital buffers to play with than they did this time last...
City A.M. - Business

5 things to know, including another South Florida bank to be acquired

Buenos días, South Florida. Pompano Beach-based bank is latest to sell. 1. Stonegate announces sale...
bizjournals - Business

Levy for not keeping min balance in banks should be reasonable

Several banks impose charges for non-maintenance of minimum balance and also on cash deposits and...
DNA - Money

Zimbabwe: 'If You See a U.S.$100 Note, It's Been Sneaked In'

[News24Wire] Cash-strapped Zimbabwe is trying to stop banks importing high-denomination US dollar...
allAfrica.com - Africa

You Might Like

Environmentally friendly: newsR is hosted on servers powered solely by renewable energy
© 2017 newsR / One News Page Ltd. All Rights Reserved.  |  About us  |  Disclaimer  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter