See on Scoop.it - La Gazzetta Di Lella - News From Italy - Italiaans Nieuws
ROME — Italy’s banking system had the highest number of lenders flunking the European Central Bank’s review of eurozone banks, reflecting the country’s unremitting economic malaise.Italy’s two largest banks, Unicredit and Intesa Sanpaolo, passed the tests comfortably. However, the central bank said that nine of the 15 Italian lenders under the review had capital shortfalls at the end of 2013 and four of them still must raise more capital, including Monte dei Paschi di Siena.Considered the world’s oldest continuously operating lender, Monte dei Paschi must raise 2.1 billion euros, or $2.7 billion, the largest of any individual bank covered by the review, released on Sunday.‘‘Italian small banks are taking the toll of the longstanding recession,’’ said Pietro Reichlin, professor of economics at LUISS University in Rome. ‘‘Their conditions are aggravated by credits they can’t recover, and the only clients who are seeking credit are the ones in difficulty economic situations, and thus risky loans.’’
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