Italy Banks Emerge as Biggest Losers in ECB Industry Health Test
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Italian banks showed the largest combined capital shortfall in the European Central Bank’s review of the region’s lenders as the country struggles to emerge from its third recession in six years.
Banca Monte dei Paschi di Siena SpA, Italy’s third-largest lender, emerged with a capital gap of 2.1 billion euros ($2.7 billion) while Banca Carige SpA must replenish 814 million euros of capital after taking into account funds raised this year, the ECB said in a statement today. Of the nine Italian banks that failed a stress test, four still showed holes after measures they took this year, according to the ECB’s report.