Visco: decision in the coming weeks of “bad bank” and the reform of the cooperative credit – Il Sole 24 Ore

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This article was published on Oct. 28, 2015 at 11:46.
The last change is the 28 October 2015 at 12:00.

During the “coming weeks, the project feasibility ‘of the vehicle for the management of impaired loans with the EU “it will be definitively established.” This was stated by the Governor of the Bank of Italy, Ignazio Visco, the World Savings Day, pointing out that “whatever the outcome” banks will have to find ways to a “gradual downsizing” of those assets. In particular, according to Visco, the amounts on deposits over 100 thousand euro will receive “under the current wording of the laws implementing the Directive preferential treatment compared to other liabilities of the bank. Therefore, the lower the probability that they are affected in the resolution of a crisis. ” Bank bonds, remember instead the governor, may be subject to bail-in and therefore “it is essential that the obligations of transparency and fairness that banks must adhere to the issuance, placement and trading of these securities from the customers retail are carefully acquitted keeping this risk. ” According Visco “to avoid possible negative effects from the bail-in the resolution authority will verify that banks hold adequate liability in quality and quantity to ensure the absorption of losses and the recapitalization.”

Necessary reform of the cooperative credit
“It is now also necessary to reform the credit cooperative” says Ignazio Visco in a passage of his speech . “We followed the reflections that have developed within the category in view of a project of self-reform. A point on which the comparison is still open is whether the cooperative group should be one or more than one. The hypothesis of a single group, if shared within the category, certainly presents positive aspects; but if consensus on uniform solution did not exist, this should not be reason to stop reform. Higher capitalization, higher levels of efficiency, improved corporate governance could also be achieved by a limited number of groups. ”

Growth in 2015 could touch the 1%
“The growth of the business in 2015 could exceed that indicated in our projections of July, touching 1%. ” This is the prediction made by the governor of the Bank of Italy, Ignazio Visco, in his speech at the 91st World Savings Day promoted by ACRI. Visco stressed that “in our country’s GDP has been growing again for the first time since the crisis of sovereign debt, at rates around 1.5% annually. The initial thrust of foreign demand was accompanied by that of internal components, with the consolidation of the recovery in private consumption and the gradual resumption of investment. The business surveys confirmed a growing optimism on the demand, which encourages the propensity to invest the significant increase in employment, which also benefited from the measures taken by the Government, will continue to support consumer spending. “

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