Italy Banks May Face Up to $20 Billion Capital Gap, ABI Says
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Italian banks, which have raised money, sold assets and cut costs to boost capital, may face a shortfall of as much as 15 billion euros ($20 billion) as regulators scrutinize their balance sheets this year.
“We are confident that the Italian banks will pass the stress test exercise without major problems,” Giovanni Sabatini, general manager of the Italian banking association, said in an interview in Rome. He agrees with an estimate made by the Bank of Italy of a potential capital shortfall of 10 billion euros to 15 billion euros. “That’s manageable.”