Rossi (Bank of Italy): “Stop the sale of subordinated bonds over the counter” – Il Sole 24 Ore

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This article was published on Dec. 13, 2015 at 15:24.
The last change is the December 13, 2015 at 15:50.

“It is now an urgent need for products such as subordinated bonds is not suitable for sale at the counter, by law. ” The director of the Bank of Italy Salvatore Rossi back to ask a rule preventing the sale to retail clients because these tools with the new rules on the bail-in “has really changed the world in the management of banking crises.” In an interview with “In half an hour” on Rai 3 Rossi points out that the Bank of Italy has done all that was possible “to the best of ability.” He adds that “for Banca Etruria, like other banks, it was impossible to find a market solution,” that is another bank that agreed to buy the company credit commissioner.

On the other hand, says, “in these years of crisis has become very difficult to find solutions to the market, because all banks have problems of non-performing loans. I am convinced – continued Rossi- that Consob has also done the same. ” The General Manager of the Bank of Italy points out that in recent years “in Europe a number of banks entered the crisis in recent years, banks British, French, Dutch, German. Rivers of money were paid in the other countries, but not in Italy and in Italian banks, it is necessary to emphasize this. “

And speaking of Italian banks Rossi says: “I was pleased that the Prime Minister has launched a recall of the bottom of the solidity of the Italian banking system and the need to have confidence in the system as a complex”. The number two of the Italian central bank also highlights also the need for a reform of the cooperative banks that are now too small and fragmented and may be in difficulty to go on the capital market to raise funds.

“In any case – it adds – the worst thing we can do is to take a cue from a situation that has arisen, but definitely very limited though with dramatic implications, draw consequences for the entire system of credit Italian. These four banks (Banca Marche, Banca Etruria, and Carife Carichieti, the rescued by the government, ed) are less than 1% of the deposits of the entire Italian system. Although there is no doubt that for 10 thousand and 500 people who have seen clear savings in subordinated notes there is no doubt that it is a serious problem. ”

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