ROME (Finance) – Banks in Italy have solid liquidity and capital position to deal with the coronavirus crisis, however, smaller lenders might not be able to sustain the virus’ impact, according to the central bank.
Bank of Italy’s Chief Supervisor Paolo Angelini and head of Financial Stability Giorgio Gobbi requested the government to consider the use of public funds to smaller banks’ mergers.
“For banks that already had some elements of fragility, it is possible that government measures and supervisory actions are not enough to allow them to sustain the economic consequences of the pandemic.”
– Bank of Italy’s Chief Supervisor Paolo Angelini and head of Financial Stability Giorgio Gobbi’s speech content
The Bank of Italy stated that the crisis may drive a significant increase in the share of bank loans turning sour.
An estimated 50 billion euros of additional financing needs of Italian businesses are anticipated between March and July.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.