Class Economy Premium: URUGUAY: The Italian banking sector is recovering thanks to Renzi and Draghi

Friday, January 22, 2016

URUGUAY: The Italian banking sector is recovering thanks to Renzi and Draghi – EntornoInteligente

El País / The Italian banking sector recovered today crash in recent days, after the Italian Prime Minister Matteo Renzi, defend its strength and appearance President of the European Central Bank (ECB), Mario Draghi, who gave a respite to all European markets.

After three days of major landslides, the major banks were recovered today and some did by far as Banca Monte Paschi Siena, whose shares rose on the Milan Stock Exchange one 43.14% at the end of the session

He was not alone as Banca Popolare Emilia Romagna rose 11.04%.; Banco Popolare, 10.31%; Unicredit, 7.93%; Ubi Banca, 5.69%; Mediobanca, 5.54% and Intesa Sanpaolo 4.88%.

The Italian banking, trapped in their toxic assets, shareholders and worries dragged from earlier this week to other European markets the red.

Knowing that this, the first Italian minister was now strong and defended the soundness of banks.

In an interview published in the Italian daily “Il Sole 24 Ore”, Renzi referred to the possibility of proceeding to “bank mergers and consolidations” as a solution to the downward pressures in recent days.

“The first solution is to NPLs will boost the economy, facilitate the private market to buy them, encourage partnerships, bank mergers and consolidation, “said

Serious fall of the Italian banking captured the attention of investors and therefore the idea of creating a “bad bank” has gained momentum among some voices in the country and has even been openly defended by the president of the Italian Banking Association (ABI), Antonio Patuelli.

Renzi recognized that a “bad bank” to buy impaired loans could “have done before” by agreement with the institutions of the European Union (EU), but said the economy minister, Pier Carlo Padoan, “is doing miracles.”

For the recovery of the Italian banking sector it has also played an important role upon the President of the ECB, which kept the meeting in March the company reassessed its monetary policy.

Shareholders They interpreted the words of Draghi as it could have economic stimulus measures and the effect was immediate. European markets and Milan rallied

Italy is one of the European countries where the problem of impaired credits is more rooted.

Last December, the rating agency Fitch warned that Italian banks accumulate 200,000 million in bad loans, “an amount that weighs on profitability and management of the sector.”

The recent alarm has jumped after it became known that the ECB has requested reports on credit risk to some Italian banks.

In his role as European banking supervisor, the Central Bank Europe has said that it is a “routine” procedure and there is no reason to distrust the Italian banking system.

However, neither the announcement of the ECB nor the extraordinary measures that triggered the CONSOB (the Italian CNMV) to ban short selling and drive market speculators stopped the collapse of Italian banks in recent days.

The hardest hit was Monte dei Paschi di Siena, which since Monday to Wednesday lost 40% of its value by the fear of shareholders because of its low capital levels

No less sound were transfers from other bank stocks. Only yesterday, the Popolare Bank was down 10.88%, Unicredit (- 7.77%), Banca Popolare Emilia Romagna (- 7.30%), Ubi Banca (- 6.68%), Banca Popolare Milano (- 6.52%), Mediolanum (- 5.79%) and Mediobanca (- 4.01%).

URUGUAY: The Italian banking sector thanks to Renzi and Draghi

Information is retrieved with The País

http://entornointeligente.com/articulo/7745395/URUGUAY-El-sector-bancario-italiano-se-recupera-gracias-a-Renzi-y-a-Draghi