Italy's Bank Rescue to Cost Lenders Additional $1.9 Billion
- Additional one-off will hurt profitability, Bernardi says
- Banks may be asked to pay a further EU1.2b next year
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Italy’s banks will shoulder most of the burden of rescuing four of the nation’s lenders, incurring 1.8 billion euros ($1.9 billion) in extra costs for the year under a bailout plan that spares senior bondholders and depositors.
The rescue will add to pressure on an industry hobbled by weak economic growth and narrow lending margins. Profitability remains below the level before the 2008 financial crisis.